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Wall Street’s new vibe check
Figma got a little love letter from Bank of America, and the market ate it up. The firm reinstated coverage with a Buy rating and a $30 price target, basically telling investors that the whole “AI will kill design software” thesis might be backwards.
The stock responded the way Wall Street usually does when someone upgrades a beaten-up name: it snapped higher, climbing nearly 10% on Tuesday. That’s not nothing when the market has already dragged Figma about 85% below its 52-week high. Oof.
AI isn’t the villain here
BofA’s core argument is pretty simple: AI isn’t replacing the need for design tools — it’s multiplying the number of people building digital products and making the workflow more chaotic. And when teams get messier, centralized collaboration platforms tend to look a lot more useful, not less.
The analysts also pointed to some early signs that AI is already helping the business:
- In Figma’s first quarter of 2026, 75% of enterprise customers that hit their AI credit limits bought more credits.
- More than 95% of those customers stayed active on the platform.
- Customers generating more than $100,000 in annual recurring revenue rose 48% year over year.
- Net dollar retention hit a spicy 139%.
The bull case, with a few fine-print footnotes
BofA thinks Figma can grow revenue 35.6% in 2026 and 23% in 2027, both ahead of peers. It also sees margins improving over time, even if AI spending puts some pressure on profits in the near term.
Of course, this isn’t a fairy tale. The risks are the usual suspects: slower AI adoption, tougher competition from AI-native design tools, and weaker monetization of AI features. But BofA’s message is clear — it sees Figma as an AI beneficiary, not an AI casualty.
Big picture: if AI is turning product development into a more crowded kitchen, Figma wants to be the main counter where everyone chops, stirs, and argues over the recipe.