There's plenty of bearishness these days around software companies amid concerns of whether they will really be needed with artificial intelligence (AI) making tasks a whole lot easier to do. Software that's involved with creating images can be particularly questionable, as making images is one thing AI chatbots can do really well.
That's one of the reasons that a stock like Figma (FIG 6.00%) has been struggling mightily. It's down around 80% from its 52-week high of $142.92. While its results have been strong and its growth looks encouraging, investors can't seem to get past the long-term question marks about the business and its ability to grow with the looming AI threat.
Recently, the company announced it would be partnering with a popular AI chatbot -- Claude, from Anthropic. It's an intriguing move, and it could emphasize, perhaps not necessarily risk, but opportunity related to AI. Could this be what Figma's stock needs to rally?
Image source: Getty Images.
Partnership will help turn code into designs
Figma has announced that it has a new feature called "Code to Canvas," which will make it easy for people to turn code from Claude into designs that can be modified and fine-tuned within Figma's app. Coding is a popular use case for chatbots like Claude, which can create apps quickly and easily, even for people with no coding experience.
The design piece, however, is where Figma hopes to add value in the process. Using its software to refine an application and make it work and interact precisely as it should is where Figma can still be incredibly useful. The big question, however, is whether chatbots could end up overtaking that part of the process as well. The encouraging sign, however, is that Figma is nonetheless finding collaboration opportunities that can enhance its potential due to AI.
NYSE: FIG
Key Data Points
Figma's stock has been showing signs of life
In the past month, shares of Figma have risen by 22%, as investors have become more optimistic about the business, perhaps in part due to the partnership with Anthropic. Investors likely were also encouraged by the company's recent quarterly results. For the last three months of 2025, Figma's revenue totaled $303.8 million, growing by 40% year over year.
Figma's strong results and partnership with Claude should give investors confidence that the business is not in as dire a situation as the market may have priced in at this point. The company is still projecting 38% revenue growth for the current quarter, as its business looks solid. For investors, this could be an underrated growth stock to buy right now, as the AI risk may be overblown.
