The artificial intelligence boom has fueled unprecedented global IPO activity, with $194 billion raised in stock market listings worldwide in the first half of 2026 - triple the amount for the same period in 2025 and more than the entire previous year, according to EY consultancy figures. The massive $86 billion SpaceX listing in June accounted for nearly half of this total, with eight of the top 10 IPOs since January occurring in the United States. As Renaissance Capital's Matthew Kennedy noted, this intense frenzy is concentrated in AI and technology sectors, along with aerospace and defense, while biotech also shows strong momentum. However, market experts warn that this concentrated demand could create supply-demand imbalances, with PwC's Philippe Kubisa stating that gigantic deals can already drain market liquidity.
The artificial intelligence boom is fueling the biggest energy IPO boom since 1999, with $12.6 billion raised in 2026 alone according to Financial Times reports. In the first half of this year, energy startup IPOs raised the highest amount since 1999, when the dot-com boom spurred a similar gold rush. This represents a staggering increase from $4.3 billion raised by energy companies in the entire year of 2025. As RBC clean energy analyst Chris Dendrinos explained to Financial Times, investors initially bought AI-linked names like Nvidia, then realized every chip needs energy to power it, creating a huge tailwind for energy companies. The energy sector's momentum is particularly significant given the massive capital requirements for AI infrastructure development.
VC funding in India's chip and space startups is experiencing a significant uptick in 2026, driven by the government's Semicon 2.0 policy announced last week. According to reports from Business Standard, the government plans to co-invest in chip design startups, matching funding from VC companies without any management control. This policy shift has boosted investor confidence in the high-tech sectors, with VCs investing more than $70.9 million in chip and semiconductor design companies so far this year, representing a sharp improvement from $53.7 million invested in 2025. The policy comes as tech firms need to finance hundreds of billions in investments into developing and deploying AI infrastructure, with debt markets and private financing unable to satisfy these needs.
Since 2023, VC funds have invested $162.1 million across 29 funding rounds in domestic chip and semiconductor design companies, with an average deal size of $5.58 million per round, as reported by Tracxn. The latest trend shows encouraging momentum, with VC companies investing over $175 million in home-grown players in 2025, while $100.7 million has already been raised in the first seven months of 2026. Among the top performers, Lemurian Labs secured the largest funding round of $28 million in Series A funding last December, co-led by Pebblebed and Oval Park Capital, pushing its valuation to $100–120 million. The sector's growth is particularly significant given the massive AI infrastructure requirements driving semiconductor demand.
The space and satellite segment has shown modest but steady VC funding, with companies raising $446 million across 89 rounds since 2023, according to Business Standard data. The sector received significant attention following Skyroot Aerospace's successful Vikram-1 launch and praise from Prime Minister Narendra Modi. Notable funding rounds include $50 million each raised by Skyroot Aerospace and Digantara. Skyroot secured its funding in May 2026, shortly before its rocket launch, lifting its valuation to $1.1 billion, while Digantara raised funds in December 2025, pushing its valuation to $200 million. The space sector's momentum aligns with broader AI infrastructure investment needs, as AI systems require extensive data centers and computing infrastructure.
Despite the surge in AI-driven IPO activity, market experts express concerns about potential bubble formation. As EY's Cedric Garcia noted, financial deregulatory measures under Trump have facilitated listings, with companies rushing to list before potential policy changes after November midterm elections. However, since mid-July, SpaceX's share price has slipped below its initial listing value, while outside China and the United States, IPO activity remains anemic, particularly in tech sectors. The region encompassing Europe, the Middle East and Africa has raised only $16 billion, flat compared with last year. Meanwhile, Chinese companies are turning to Hong Kong exchanges, with $48 billion in funds raised since January, putting Hong Kong's exchange on track for its best performance in five years according to PwC.
