Figma's stock price plummeted 9.12% during Monday's intraday trading session, reflecting broader pressures on software companies.

The decline comes as software firms face higher borrowing costs and tougher scrutiny from lenders, with mounting pressure from artificial intelligence threatening their business models. Industry sources indicate that AI disruption risks are causing lenders and investors to expect significant changes in the software industry, leading to delayed debt deals and increased concerns about defaults.

UBS head of credit strategy Matthew Mish noted that "AI disruption risk" is expected to be increasingly reflected over 2026 to early 2027, particularly for sectors with elevated refinancing needs. The software index has already declined 20% this year as investors dump shares of companies vulnerable to automation and AI-driven market disruptions.