The S&P 500 has reached a historical high, and investor optimism is high, dominated by specific themes such as AI and cryptocurrency. As a result, more and more companies are choosing to go public through a traditional IPO route. A handful of these new listings have already handed double or even triple-digit returns to early investors within days.

If you are wondering whether it’s the right time to explore IPOs, this article will help you understand what’s driving the current surge, how these deals worked in past market highs, and what’s different now. The article also highlights recent high performers, key IPOs to watch, and essential factors to consider before investing in a public offering.

IPO Market Trends and Momentum in 2025

Following a dramatic surge during the pandemic, the U.S. IPO market is steadily regaining momentum in 2025, although it remains well below the historic highs of 2021. The peak occurred in 2021, when a record 486 IPOs entered the market, raising a staggering $142.4 billion, driven by low interest rates, strong retail participation, and abundant liquidity. But as conditions tightened, the market cooled rapidly. IPO filings dropped to 145 in 2022, and proceeds shrank to just $7.7 billion.

Since then, signs of recovery have emerged. In 2023, filings rose to 183 and proceeds reached $19.5 billion. That rebound accelerated in 2024 with 216 IPOs and $29.6 billion raised. In 2025 so far, the market has recorded 122 IPO filings, a 13% increase compared to this time last year, and has raised $15.6 billion year to date, according to data from Renaissance Capital.

Which IPOs Are Leading the Pack in 2025?

Investor sentiment has clearly improved, supported by successful listings such as Circle Internet, Chime, and Voyager Technologies. These blockbuster listings, along with renewed enthusiasm in sectors such as AI, fintech, and crypto, signal a robust rebound. While the frenzy of 2021 is unlikely to return anytime soon, optimism remains high in the market. Below is a snapshot of how recent IPOs performed in their early trading days, along with how they are trading as of recently:

Some names have already proven their market muscle. Circle Internet and CoreWeave, two companies riding the crypto and AI waves, respectively, have delivered eye-popping gains of over 500% and 300%. Hinge Health, which blends AI with digital healthcare, is up by nearly 50%. Defense-focused Voyager Technologies has seen a 37% gain, while fintech favorites like Slide Insurance, eToro, and Chime have all rewarded early investors with double-digit returns.

Others have lagged. Chagee Holdings, a consumer-focused brand, remains in negative territory since its debut. But the broader trend is clear. Investors are showing strong interest in companies that come with clear growth stories, especially those operating in futuristic sectors.

Upcoming US IPOs to Look out For

Following the success of names like Circle Internet and Chime, the pipeline is building. Several high-profile companies are preparing to go public, and investors are already watching closely. Here are five upcoming IPOs to watch:

Regulatory Tailwinds Driving AI and Crypto IPO Momentum

A wave of regulatory optimism is also playing its part. Under President Trump’s administration, both crypto and AI are enjoying policy tailwinds. Bitcoin has crossed the $100,000 mark, and total crypto market capitalization now exceeds $3.3 trillion. Trump’s campaign promises to support digital assets and a lighter regulatory framework are being credited with giving IPO hopefuls the green light.

Meanwhile, on the AI front, the administration has proposed shielding the sector from state-level regulations for the next decade. Tech investors have responded favorably, pouring money into AI infrastructure and hardware plays. IPO candidates like Cerebras and others in the AI ecosystem are seeing growing investor interest.

IPO Investing Guide 2025 for Retail Investors

For retail investors, the excitement is real, but so are the risks. Here are four key factors investors should consider before jumping in.

• Profitability and Cash Flow

Due to tariffs and rising geopolitical uncertainty, investors reward companies with strong fundamentals to safeguard their capital. Companies that are profitable or nearing breakeven are favoured over cash-burning ventures.

• Valuation Discipline

As Warren Buffett says, “Price is what you pay, value is what you get.” Before you invest, check if the company’s price is fair by comparing it with similar companies already listed in the stock market.

• Management Team and Ownership

Evaluate the experience and track record of the leadership team. Strong founder-led companies with relevant industry experience have better chances of building great businesses in the long term, driving shareholder returns.

• Sector Momentum

IPOs from AI, crypto, fintech, and defense sectors are capturing the lion’s share of early gains. Market sentiment plays a significant role in short-term performance. However, it may not be useful for long-term gains once the hype subsides.

The Takeaway for IPO Investors in 2025

The IPO market’s rebound is real, but selective. Strong narratives, sound financials, and smart execution are separating leaders from laggards. For investors, this is the time to be curious, careful, and clear about the value behind the valuation.