Major IPO contributors include high-profile companies like Reddit, Viking Cruises, and innovative firms such as Circle Internet Group and CoreWeave, with top investment banks facilitating these offerings and earning substantial fees.

The current IPO environment is highly frothy, favoring high-growth sector companies that can achieve lofty valuations and raise capital for expansion, but those with inflated valuations unsupported by fundamentals face significant correction risks.

Following a cooldown period in 2022-2023 caused by inflation and rising interest rates, the IPO market has seen a strong rebound in 2024 and the first half of 2025, with market volatility briefly spiking in April due to geopolitical issues before rebounding in summer 2025.

This resurgence is driven by stabilizing economic factors and increased investor confidence, leading to a 17% rise in global IPO proceeds and a 76% increase in U.S. IPOs in the first half of 2025.

The boom is fueled by industry trends like the AI surge, which has heightened competition, M&A activity, and regulatory scrutiny from agencies such as the SEC, drawing parallels to the dot-com bubble era.

Investors are advised to adopt a cautious, long-term approach by focusing on fundamentals, conducting thorough due diligence, diversifying portfolios, and staying alert to economic and geopolitical developments.

The market could experience a sustained recovery, increased volatility, or a correction if valuations are unsustainable, potentially leading to a two-tier market where only the most innovative companies command premium valuations.

Key sectors driving this boom include Technology, Media, and Telecommunications—especially AI, cloud computing, and cybersecurity—as well as industrials and consumer sectors, with SPACs making a notable comeback, accounting for nearly 37% of U.S. IPOs.

Looking ahead, the IPO market is expected to stay active but cautious, with 3-5 high-growth sector IPOs weekly, though it remains sensitive to macroeconomic factors like inflation and interest rates.

While early investors such as VCs and PEs benefit from lucrative exit opportunities, retail investors face risks of overpaying for overhyped IPOs that often underperform over time.