This design stock has lost roughly half its value in 2026. Citi thinks it could double from here

Stock Price Target

$36

Citi's target for Figma's stock, suggesting a 100% upside from its recent close.

YTD Stock Decline

52%

Percentage drop in Figma's stock value in 2026.

Projected Market Size

$50 billion

Citi's estimate of Figma's total addressable market by 2029.

§ 01 Executive Snapshot

What: Figma's stock has lost approximately 52% in 2026, but Citi Research believes it could double due to AI integration in its design software.
Who: Figma, Citi Research, Analyst Tyler Radke.
Why it matters: The potential growth of Figma's market opportunity amid AI advancements could reshape the design software landscape and investor sentiment.

Citi initiated coverage of Figma with a buy rating and a price target of $36, indicating a 100% upside from its recent closing price.
Figma's stock has dropped about 52% this year due to concerns over AI disrupting traditional design software markets.
Citi projects Figma's total addressable market could grow to $50 billion by 2029, potentially doubling its estimated value from last year.

The design software market is undergoing significant changes as AI capabilities expand, prompting a shift in how design workflows are managed.
Figma's integration of generative AI positions it favorably to capture a growing segment of the market and adapt to evolving customer needs.

Figma's stock could see immediate recovery and growth as AI-driven enhancements are integrated, attracting new customers and retaining existing ones.
Long-term, the company's ability to leverage AI may increase its market share and revenue through subscription upgrades and new app developments.

Investor skepticism regarding AI's impact on traditional design software could hinder Figma's stock recovery in the short term.
Competition from other design software providers that also integrate AI could pose challenges to Figma's market position.

Watch for upcoming product releases or AI feature announcements from Figma that could validate Citi's bullish outlook.
Monitor analyst sentiment and consensus ratings for shifts in perception regarding Figma's growth potential as AI integration progresses.

§ 07

What has happened to Figma's stock in 2026?

Figma's stock has lost approximately 52% in 2026.

Why does Citi Research believe Figma's stock could double?

Citi Research believes Figma's stock could double due to the integration of AI in its design software.

How is Figma adapting to changes in the design software market?

Figma is integrating generative AI to capture a growing segment of the market and adapt to evolving customer needs.

What risks does Figma face in its stock recovery?

Figma faces investor skepticism regarding AI's impact and competition from other design software providers that also integrate AI.