Figma Inc. (NYSE:FIG) stock climbed nearly 10% on Tuesday after Bank of America reinstated coverage with a Buy rating and a $30 price forecast, arguing that artificial intelligence is strengthening the company’s competitive position rather than disrupting its business.

The brokerage said Figma’s stock has fallen about 85% from its 52-week high as investors worried that generative AI would reduce the need for design software.

However, Bank of America believes AI is expanding demand for collaborative product development and creating new monetization opportunities 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, citing the company’s stronger growth outlook and growing role in AI-powered software development.

AI Seen Driving Adoption

Bank of America said AI is increasing the number of people creating digital products while also making workflows more complex. That, in turn, should increase demand for a centralized platform where designers, developers and product teams can collaborate.

The analysts pointed to early evidence that AI is already contributing to revenue growth. During the first quarter of 2026, 75% of enterprise customers that exceeded their AI credit limits purchased additional credits, while more than 95% remained active on the platform. Enterprise customers generating more than $100,000 in annual recurring revenue increased 48% year over year, while net dollar retention reached 139%.

Growth Outlook

Bank of America 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 said risks include 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 reflected in 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, according to Benzinga Pro data.

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