• On 12 June 2026, Tuya Smart announced a partnership with Zeroth to fuse Tuya’s AI+IoT ecosystem with Zeroth’s consumer-grade embodied robots, aiming to turn home service robots into intelligent, adaptive companions that coordinate lighting, climate, security, and other connected devices.
• A distinctive aspect of this collaboration is Tuya’s Physical AI Engine and OmniMem long-term memory, which position household robots as mobile intelligence hubs that combine whole-home sensor fusion with personalized, continuously learning interaction.
• We’ll now examine how this push to make robots a “super mobile terminal” within Tuya’s AI+IoT platform could influence its investment narrative.

AI is about to change healthcare. These 40 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Tuya Investment Narrative Recap

For Tuya to make sense in a portfolio, you need to believe its AI + IoT platform can keep adding higher value services on top of connected devices. The Zeroth partnership strengthens that story by putting Tuya’s Physical AI and OmniMem at the center of home robots, but it does not change that near term the key upside still rests on scaling higher margin SaaS and value added services, while the biggest risk remains intense IoT and AI competition pressuring pricing and differentiation.

The April 2026 Tuya Global Developer Summit looks especially relevant here, because the same Physical AI Foundation, OmniMem V2.0 and “Hey Tuya” upgrades that underpin the Zeroth robots are also being offered broadly to developers. If Tuya can translate that wider AI toolkit into more production apps, it could reinforce its developer led network effects, which are an important catalyst for sustaining platform stickiness and monetization across categories beyond consumer robots.

Yet while the robot story sounds appealing, investors should be aware that intensifying global IoT and AI competition could still...

Tuya’s narrative projects $466.4 million revenue and $92.7 million earnings by 2029. This requires 12.4% yearly revenue growth and about a $30 million earnings increase from $62.6 million today.

Uncover how Tuya's forecasts yield a $3.42 fair value, a 70% upside to its current price.

Exploring Other Perspectives

Five Simply Wall St Community fair value estimates for Tuya range from US$2.25 to about US$4.58, underlining how far apart individual views can sit. Against that spread, Tuya’s push to embed AI deeper into IoT devices through initiatives like the Zeroth partnership sits alongside ongoing concerns about competitive pressure on pricing and margins, which readers may want to weigh as they compare these different perspectives.

Explore 5 other fair value estimates on Tuya - why the stock might be worth just $2.25!

Decide For Yourself

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Tuya research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Tuya research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tuya's overall financial health at a glance.

Searching For A Fresh Perspective?

Our top stock finds are flying under the radar-for now. Get in early:

• This technology could replace computers: discover 29 stocks that are working to make quantum computing a reality.
• We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them.
• The future of work is here. Discover the 33 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation.

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.