Figma Inc. (FIG) shares are edging higher Thursday afternoon, riding a wave of optimism that artificial intelligence might actually be good for design software companies, not a threat to their existence. The broader tech sector is having a risk-on day, and Figma is tagging along — but there's a bit more to the story.

What's Driving Figma's Stock Today?

The latest push comes after a bullish analyst reset that reframes AI as a demand driver for Figma's collaborative product-development workflow. The thinking goes like this: AI doesn't replace design tools; it expands the number of people building digital products and makes collaboration more complex. That complexity is exactly the kind of problem a centralized platform like Figma is built to solve.

On the monetization front, the bull case points to a hybrid model combining seat-based subscriptions with usage-based pricing, including AI credits that can turn into incremental revenue when customers go over their limits. Of course, there are risks too — slower AI adoption, more AI-native competitors popping up, and the possibility that AI features don't monetize as well as hoped. But for now, the market is leaning into the optimistic scenario.

Figma Stock: Key Levels to Watch

Zooming out to the charts, Figma is still in recovery mode. The stock is trading about 30% below its 200-day simple moving average of $31.63, after a brutal 12-month drawdown of 80.84%. That's a lot of damage. But the picture is improving: price is now above the 20-day SMA ($19.45) and the 50-day SMA ($20.55), and it's pressing right around the 100-day SMA ($22.06). That 100-day line often acts as a "decision line" — if the stock can hold above it, the bounce might turn into a real uptrend.

The moving average structure is still mixed-to-bearish, though. The 20-day SMA remains below the 50-day SMA, and the 50-day is below the 200-day — that's the Death Cross that happened back in January. But momentum is improving: the MACD is above its signal line with a positive histogram, which in plain English means the selling pressure is easing and this rebound has more legs than the last few false starts.

Here are the key levels to keep an eye on:

• Key Resistance: $25.50 — A nearby pivot and round-number area where rebounds have stalled before. If Figma can break through here, it could start working its way back toward those longer-term averages.
• Key Support: $18 — The lower end of the recent range, where buyers have stepped in before. If the stock falls back to this level, it's a test of whether the bounce is real.

How Figma Compares to the Tech Sector Today

Figma is underperforming the tech sector today, up about 1.3% versus the Technology Select Sector SPDR ETF (XLK), which is up 2.28%. That's a lag of roughly 0.97 percentage points. It matters because Technology is currently the top-ranked sector out of 11, so relative weakness on a strong sector day suggests investors are still being picky within software.

Zooming out, the sector backdrop has been constructive. XLK is up 2.64% over the past 30 days and a whopping 30.10% over the past 90 days. If that strength continues, Figma's next technical tell is whether it can convert the current bounce into sustained trade above the 100-day and 200-day area, rather than fading back into the lower range.

What Does Figma Do and How Does It Make Money?

Figma is in the business of turning ideas into digital products and experiences, focusing on the entire software creation lifecycle. Its browser-based platform helps teams launch products quickly, reflecting the idea that design isn't just one step or one person's job — it's a collaborative process.

The company makes money from subscriptions for access to its platform. That's why the AI discussion is so central. If AI increases the number of people building digital products and makes collaboration more complex, Figma's addressable market expands. It also raises the bar on product differentiation and pricing power — which is exactly what investors are betting on right now.

Figma Stock Price Movement on Thursday

Figma shares closed Thursday up 2.72% at $22.26 at the time of publication, according to market data.

Image: Shutterstock