Figma's stock has experienced a significant decline of approximately 52% this year, primarily due to investor fears regarding the impact of artificial intelligence on the traditional design software sector. However, Citi analyst Tyler Radke believes that Figma is well-positioned to benefit from the AI boom, as its platform already incorporates several generative AI features.
This integration could not only mitigate potential disruptions but also expand Figma's total addressable market to $50 billion by 2029, effectively doubling its estimated value from the previous year. Radke suggests that the growth in AI could attract a broader customer base and stimulate new app development, which may enhance Figma's revenue through subscription upgrades.
Despite Citi's optimistic outlook, the consensus among analysts is more cautious, with only three out of 13 recommending a buy or strong buy on the stock, indicating a divergence in market sentiment regarding Figma's future prospects