Assessing Tuya (TUYA) Valuation After Aura AI Pet Robot Debut At CES 2026

Tuya (TUYA) has drawn fresh attention after unveiling Aura, an AI-powered pet companion robot, at CES 2026. This launch signals a move beyond traditional smart devices into pet care and home service robotics.

See our latest analysis for Tuya.

Despite the CES spotlight, Tuya’s recent trading has been subdued, with a 7.69% decline in its 90 day share price return and a 19.42% fall in the three year total shareholder return. This suggests momentum has been under pressure even as new products emerge.

If Aura has you thinking about where AI goes next in consumer tech, this could be a good moment to scan high growth tech and AI stocks for other ideas on your radar.

Tuya now trades at US$2.16 per share, with its own metrics pointing to a modest intrinsic discount and a sizeable gap to analyst targets. So is Aura the catalyst the market is underestimating, or is future growth already priced in?

Most Popular Narrative: 34.9% Undervalued

Tuya’s most followed narrative points to a fair value of $3.32, well above the last close at $2.16, and frames Aura within a broader AI and IoT push.

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.

Curious what sits behind that upside gap, and how much depends on revenue, margins, and future earnings power rather than hype around new devices? The full narrative sets out those assumptions in detail, including how Tuya’s AI and IoT rollout, product mix, and earnings profile are expected to line up against that $3.32 fair value.

Result: Fair Value of $3.32 (UNDERVALUED)

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

However, that upside story still runs into real risks, including global trade and tariff pressures, as well as intense IoT competition that could squeeze Tuya’s margins and revenue stability.

Find out about the key risks to this Tuya narrative.

Another Angle on Valuation

Our SWS DCF model takes a different route, focusing on Tuya's forecast cash flows and discounting them back to today. On that view, the fair value sits at $2.34 per share, only slightly above the current $2.16 price, which suggests a much tighter margin of safety. Which lens do you find more convincing?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Tuya Narrative

If you see the numbers differently, or prefer to weigh the data on your own terms, you can build a fresh Tuya thesis in just a few minutes, starting with 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.

Ready for more investment ideas?

If Tuya is just one piece of your watchlist, this is the moment to widen the net and line up a few more candidates worth your time.

• Spot potential rebound stories by scanning these 3523 penny stocks with strong financials that already carry stronger balance sheets and fundamentals than many expect at this size.
• Position yourself early in the next wave of automation and intelligence by reviewing these 24 AI penny stocks shaping how data and software power future products.
• Focus on price and quality together by searching these 865 undervalued stocks based on cash flows where current market quotes sit below cash flow based assessments.

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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