Tuya (NYSE:TUYA): Valuation Check After Q3 2025 Earnings and Renewed Buy Calls from Major Brokers

Tuya (TUYA) just logged its fiscal Q3 2025 results, delivering a ninth straight quarter of year over year revenue growth, and that consistency is exactly why big brokers are staying constructive on the stock.

See our latest analysis for Tuya.

The steady demand story is starting to show up in the tape too, with a year to date share price return of 25.86 percent and a three year total shareholder return of 36.48 percent suggesting momentum is gradually rebuilding around the 2.19 dollar level.

If Tuya’s latest numbers have you thinking about where else software and AI driven growth could show up next, it is worth exploring high growth tech and AI stocks for other potential ideas.

With revenues climbing, profits improving, and the stock still trading at roughly a 48 percent discount to consensus targets, is Tuya quietly undervalued here, or is the market already pricing in its next leg of AI driven growth?

Most Popular Narrative Narrative: 34% Undervalued

Compared with Tuya's last close at 2.19 dollars, the most followed narrative points to materially higher fair value, hinging on aggressive but structured growth expectations.

The continued global proliferation of IoT devices, evidenced by strong growth in developer numbers, cross-category AI adoption, and expansion into new product verticals (such as AI energy solutions, toys, and pet care), positions Tuya to benefit from expanding end markets, which should drive sustained top-line growth and increased diversification of revenue streams.

Ongoing expansion of SaaS and value-added services, with SaaS segment revenue growing at a faster rate than PaaS and achieving over 70% gross margin, is structurally shifting Tuya's business model toward higher-margin, recurring revenue, supporting long-term gross margin improvement and greater earnings visibility.

Read the complete narrative.

Curious how steady double digit growth, rising margins, and a premium future earnings multiple all combine into that upside case? The full narrative unpacks the exact revenue, profit, and valuation curve it expects Tuya to follow, and why a higher price still looks justified in that framework.

Result: Fair Value of $3.32 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the narrative could unravel if intensifying global competition or prolonged trade and supply chain disruptions squeeze margins and slow Tuya’s international growth.

Find out about the key risks to this Tuya narrative.

Build Your Own Tuya Narrative

If you would rather examine the numbers firsthand and shape your own view, you can build a personalized Tuya thesis in under three minutes: Do it your way.

A great starting point for your Tuya research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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