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What Does Wall Street Think About Tuya Inc. (TUYA)?

Tuya Inc. (NYSE:TUYA) is one of the best long-term penny stocks to invest in. CICC maintained a Buy rating on Tuya Inc. (NYSE:TUYA) on December 2, setting a price target of HK$24.96. Similarly, Morgan Stanley also reaffirmed a Buy rating on the stock on November 25 with a price target of HK$27.30.

The rating updates came after Tuya Inc. (NYSE:TUYA) reported its fiscal Q3 2025 earnings on November 24, with total revenue for the quarter rising around 1.1% year-over-year to $82.5 million. Management reported that the company attained its ninth consecutive quarter of year-over-year revenue growth, driven primarily by steady demand for its core SaaS and PaaS offerings, along with the continued improvement of its product portfolio.

Tuya Inc. (NYSE:TUYA) plans to maintain this momentum by continuing to focus on product innovation advancement, especially in AI-driven software and developer services, along with strengthening its global presence and bolstering relationships with core customers.

Management further reported that fiscal Q3 2025 results showed the company maintaining a solid financial foundation, with gross margin improving to 48.3% year-over-year and continued expansion in operating leverage through disciplined cost management. GAAP net profit in the quarter turned positive and exhibited a notable improvement from the previous year, and non-GAAP profitability also remained strong with a net margin of 24.4%.

Tuya Inc. (NYSE:TUYA) generated $30 million in operating cash flow in fiscal Q3 2025 and maintained a strong net cash position of more than $1.0 billion, factors that allow it the flexibility to continue investments in long-term growth initiatives and navigate external uncertainties.

Tuya Inc. (NYSE:TUYA) is a global AI cloud platform service provider that mingles AI with everyday Life. It offers innovative physical AI solutions for commercial applications, smart devices, and industry developers through its spatial intelligence and cloud computing capabilities. The company also provides an open, complete, and neutral global AIoT ecosystem.

While we acknowledge the potential of TUYA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TUYA and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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