BofA Says AI Is Fueling Figma’s Next Growth Phase

AI technology has brought winners and losers in the software sector; however, the controversy surrounding Figma (FIG) remains quite heated. After the stock fell by about 85% from its 52-week high, fears were raised that generative AI would commoditize digital design and damage the competitive edge of the company. Nevertheless, the sentiment turned positive this week as Bank of America resumed coverage of FIG stock with a “Buy” rating and a $30 price target, saying that AI could accelerate Figma's long-run growth rather than disrupt it.

The optimistic view comes in light of the ongoing search for software companies that will be able to capitalize on AI technology instead of defending from it. While the question of valuation has become one of the most important when it comes to recently listed software names, better enterprise adoption and monetization trends have become the main metrics for the street.