Figma Inc. (FIG) stock jumped nearly 10% on Tuesday after Bank of America reinstated coverage with a Buy rating and a $30 price target. The message? AI isn't coming for Figma's lunch — it's bringing more people to the table.
The stock had fallen about 85% from its 52-week high as investors fretted that generative AI would make design software obsolete. But BofA sees it differently: AI is actually expanding demand for collaborative product development and opening up new ways to make money through Figma's hybrid seat-based and usage-based pricing model.
The firm values Figma at 8 times estimated 2027 enterprise value-to-sales, above the peer average of about 5.9 times. That premium reflects Figma's stronger growth outlook and its growing role in AI-powered software development.
AI Seen Driving Adoption
Bank of America argues that AI is putting more people in the business of creating digital products while making workflows more complex. That complexity, in turn, boosts demand for a centralized platform where designers, developers, and product teams can collaborate.
There's early evidence that AI is already contributing to revenue. In the first quarter of 2026, 75% of enterprise customers that exceeded their AI credit limits bought additional credits, and more than 95% remained active on the platform. Enterprise customers generating over $100,000 in annual recurring revenue grew 48% year over year, while net dollar retention hit 139%.
Growth Outlook
BofA projects revenue growth of 35.6% in 2026 and 23% in 2027, compared with peer averages of 19.3% and 15.7%, respectively. The brokerage expects AI investments to pressure margins in the near term but forecasts operating margin expansion from 9.2% in 2026 to 13.8% by 2028, alongside improving free cash flow margins.
The analysts also highlighted continued enterprise adoption as a key growth driver. They estimate the number of customers generating more than $100,000 in annual recurring revenue will grow 26.2% in 2026 before moderating to more than 22% annually through 2028.
Risks Remain
Despite its bullish stance, Bank of America acknowledged risks: slower-than-expected AI adoption, increasing competition from AI-native design tools, and weaker monetization of AI features. Even so, the firm believes those concerns are already baked into Figma's valuation and views the company as an AI beneficiary rather than an AI casualty.
FIG Stock Price Activity: Figma shares were up 9.49% at $23.08 at the time of publication on Tuesday.
.jpeg)
