Tuya Inc., a leading Chinese artificial intelligence (AI) company, saw its stock surge 5.23% in pre-market trading on Thursday, buoyed by a positive analyst recommendation and the company's announcement of plans to integrate advanced AI models into its platform.

The rally was initially fueled by a bullish outlook from Morgan Stanley, the renowned U.S. investment bank. Morgan Stanley analysts expressed confidence in Tuya's prospects, citing its potential in the rapidly growing AI industry and recommending investors buy the company's shares. This positive sentiment, coupled with the broader market enthusiasm for AI stocks, drove Tuya's stock higher.

Additionally, Tuya announced a strategic collaboration with DeepSeek, a leading AI model provider, to integrate cutting-edge AI capabilities into its Internet of Things (IoT) platform. This partnership aims to transform smart devices into "active intelligence" systems, unlocking new possibilities in fields like energy management, pet care, and smart homes. Investors reacted favorably to this news, as it positions Tuya at the forefront of AI-driven innovation and commercialization.