Earlier this week, Google Cloud and Figma announced an expanded collaboration to bring Google’s latest generative AI models, including Gemini 2.5 Flash and Imagen 4, directly into Figma’s design platform.
This partnership aims to streamline design workflows through advanced AI image generation, promising a significant boost to both creative capabilities and workflow efficiency for Figma’s 13 million monthly active users.
We’ll examine how Figma’s integration of Google’s AI models may further entrench its position as a leading provider of AI-powered design tools.
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To believe in Figma as a long-term investment, I think you need to buy into the idea that AI integration can solidify its place as a leader in collaborative design. The recent Google Cloud partnership, coming right after a surge in attention from OpenAI’s ChatGPT integration, gives a compelling lift to near-term catalysts. Real-time AI-powered editing and a 50% latency cut for image generation could drive user engagement and cement Figma’s software in critical design workflows for large enterprise clients. However, the speed and scale of the stock’s bounce signal that expectations may be running high, particularly as Figma faces an expensive valuation and guidance showing a sharp earnings decline over the next few years. The risks of potential growth slowdowns or increased competition, combined with major insider selling and short financial track record, mean ongoing volatility could be a reality, even as the story just got a lot more interesting with this latest news. But investor optimism is one thing, sustaining margin growth is another entirely.
Figma’s shares are on the way up, but could they be overextended? Uncover how much higher they are than fair value.
Twenty-five members of the Simply Wall St Community provided fair value estimates for Figma ranging from about US$16 to just over US$290 per share. With such a broad spread, it’s clear that opinions on Figma’s growth story and risk tolerance are far from uniform. The recent spike in AI partnerships could sway some to the bullish camp, but the company’s rapid price moves make a strong case to weigh these viewpoints against Figma’s earnings outlook and elevated volatility.
Explore 25 other fair value estimates on Figma – why the stock might be worth over 4x more than the current price!
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