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    Is Tuya (TUYA) Undervalued As Doova Debuts At IFA 2026?

    Simply Wall St·09/06/2026 20:17:03
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    Tuya (TUYA) is back in focus after its IFA 2026 showcase put physical AI front and center for investors. The global debut of the Doova companion robot is drawing attention to Tuya stock.

    For investors, Tuya's IFA 2026 spotlight on physical AI lands after a mixed stretch for the stock, with the share price down 13.7% year to date but recording a 5.0% 1 month share price return and a 21.52% 3 year total shareholder return. This suggests that shorter term momentum is starting to rebuild even though longer term holders have seen very different outcomes over time.

    Scan beyond Tuya and size up other AI driven plays in our hand picked 29 AI small caps that could also be on the move.

    Tuya is showing clearer progress on physical AI and profitability, yet the stock still trades at about US$1.89 after a mixed return profile. Is this a strong business that is temporarily mispriced, or is it already fairly valued?

    Most Popular Tuya Narrative: 44.7% Undervalued

    Tuya's most followed narrative pegs fair value at $3.42 per share, well above the recent $1.89 close, and ties that gap directly to its AI driven IoT platform model.

    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.

    Read the complete narrative. Read the complete narrative.

    Want to see what this narrative is really baking in? It leans on compounding revenue, firmer margins, and a richer earnings multiple. The discount rate is fixed and explicit. The story behind that 44.7% gap is all in the projected mix of high margin services, global expansion and where Tuya might sit in the software peer group by the late 2020s.

    Result: Fair Value of $3.42 (UNDERVALUED)

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

    However, Tuya's reliance on cost sensitive hardware categories, along with its exposure to global trade and regulatory risks, could pressure margins and unsettle the current valuation narrative.

    Find out about the key risks to this Tuya narrative.

    Next Steps

    Does the current Tuya story feel overly optimistic or too cautious to you? Take a closer look at the data points and move quickly to form your own view based on the 5 key rewards.

    Looking for more investment ideas beyond Tuya?

    If Tuya has your attention, do not stop here. Broaden your watchlist with other focused stock ideas that could sharpen your next move.

    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.