BofA Flags AI Headwinds for Adobe, Recommends Figma as Better AI Bet
BAC•Bank of America reinstated Adobe at an Underperform rating, warning that intensifying AI competition and margin pressures could slow Adobe’s revenue growth. The firm also advised shifting AI-focused software exposure to Figma, citing its superior AI roadmap and potential upside compared with Adobe.
1. BofA Reinstates Adobe at Underperform
Bank of America restored an Underperform rating on Adobe, citing escalating AI competition, rising development costs and margin compression as key risks to Adobe’s near-term revenue trajectory. Despite recent product launches, the bank believes Adobe’s established legacy businesses face slowing growth under mounting AI-driven innovation pressures.
2. BofA Prefers Figma Over Adobe for AI Exposure
In tandem, BofA analysts argued that Figma offers investors more direct exposure to next-generation AI collaboration tools, highlighting its modular platform, strong developer ecosystem and faster feature rollout. The firm sees Figma’s AI-enhanced design capabilities as having greater disruptive potential and upside than Adobe’s integrated Creative Cloud suite.
