Figma Stock Is Down 85%, But Wall Street Thinks It’s Time for the Stock to Surge

Figma (FIG) got a much-needed boost this week. Bank of America reinstated coverage of the design software company with a “Buy” rating and a $30 price target. The stock reacted well to the development, though long-term shareholders will hardly have any reason to get excited about the 6% surge in stock price. The stock has been hammered, declining 85% from its 52-week high. The steep fall comes due to investors worrying that generative AI could make design tools like Figma less necessary.

BofA analyst Tal Liani thinks that the market might have overreacted to the potential risk. His view is that AI is more of a tailwind than a threat. While AI generates designs and content quickly, Figma is the platform where teams actually collaborate and turn that work into finished products. Liani believes AI creating more complexity increases the need for a shared space to manage it all. So, if anything, this could bring even more people into building digital products, which works in Figma's favor. There’s data behind the optimism too. In the first quarter of 2026, 75% of enterprise customers bought extra AI credits after using up their initial allowance. This suggests that companies are embracing AI features rather than avoiding them.