Tech IPOs in Q2 2025: Riding Trade Policy Volatility to Growth

The second quarter of 2025 has emerged as a pivotal moment for tech IPOs, as strategic tariff pauses and the success of trailblazers like CoreWeave and eToro signal a turning point for undervalued growth stocks. Amid geopolitical turbulence, investors are now poised to capitalize on market volatility—provided they navigate the landscape with precision. This article unpacks how trade policy shifts, coupled with market readiness, are creating a rare opportunity to invest in the next wave of disruptors.

The Tariff Pause: A Strategic Breathing Room for IPOs

President Trump’s 90-day tariff suspension in April 2025—suspending reciprocal duties on most countries except China—created a critical window for tech firms to access capital markets. By pausing retaliatory tariffs, the administration reduced immediate market shock, allowing companies like CoreWeave and eToro to list without the destabilizing impact of sudden trade wars. The pause also forced industries to accelerate reshoring and AI integration, two trends now central to IPO narratives.

CoreWeave’s $981.6M Q1 revenue, a 420% YoY jump, underscored the demand for AI infrastructure. Despite a post-earnings dip, its valuation reflects investor confidence in its $25.9B revenue backlog. Meanwhile, eToro’s IPO pricing at $52—above its $46–$50 range—highlighted pent-up demand for platforms with diversified revenue streams, even amid tariff-driven volatility.

EY’s "Market Stability" Thesis: Why the Foundation Holds

EY’s Q1 2025 report reveals a paradox: while global IPO volumes dipped, tech and healthcare sectors surged. TMT IPO pipelines grew by 77% YoY, with 47% of firms citing AI as a core competency. This reflects a market prioritizing proven innovation over speculative hype.

The resilience of profitable tech firms (59% of U.S. IPOs in Q1 were profitable) aligns with EY’s thesis that market stability is rooted in fundamentals, not policy whims. Even amid geopolitical risks, companies like Hinge Health (AI-driven telehealth) and Chime (fintech banking) are well-positioned due to:
- AI Integration: Hinge’s AI-powered physical therapy platform reduced customer acquisition costs by 30% in 2024.
- Domestic Focus: Chime’s U.S.-centric growth insulates it from tariff disruptions, while its 20M+ users signal scalability.

Cramer’s "Pent-Up Demand" Narrative: Volatility as a Buying Signal

Jim Cramer’s warning that “we need to get used to a market that’s down every morning” masks a deeper truth: volatility is the precursor to opportunity. The S&P 500’s 10% two-day drop post-tariff announcements created a liquidity crunch—but also a discount for growth stocks.

Cramer’s "pent-up demand" thesis hinges on three pillars:
1. Policy-Driven Reshoring: Tariffs are accelerating U.S. manufacturing and tech investment. CoreWeave’s $20B 2025 CapEx plan—targeting AI data centers—is a direct response to reshoring incentives.
2. AI as the New Infrastructure: EY’s data shows 62% YoY growth in healthcare tech IPO pipelines, driven by AI’s role in drug discovery and personalized medicine.
3. Market Rotation: Investors are fleeing volatility-prone sectors (autos, retail) for AI and healthcare stocks, creating a self-reinforcing cycle of demand.

The Undervalued Growth Stocks to Watch Now

Hinge Health (HNGH):
- Why Buy: Its AI platform reduces healthcare costs by 20%, with 2,000+ enterprise clients.
- Data Edge: EY’s report notes that 43% of healthcare IPOs in 2024 cited AI-driven outcomes—a trend Hinge Health exemplifies.

Chime (CHME):
- Why Buy: Its $100M+ BlackRock-backed IPO reflects confidence in its $12M/quarter crypto revenue growth.
- Resilience: Unlike tariff-sensitive sectors, Chime’s U.S.-focused model avoids supply chain risks.

Risks and Mitigation

• Tariff Uncertainty: The July 2025 tariff pause expiration looms. Investors must favor firms with diversified revenue (e.g., eToro’s crypto/stock trading mix) or those insulated by U.S. demand (Chime).
• Profitability Pressure: CoreWeave’s $314M loss underscores the need to prioritize firms with clear paths to margins. Hinge Health’s 20% cost savings via AI provide this clarity.

Conclusion: Act Before the Market Stabilizes

The Q2 2025 tech IPO surge is no fluke—it’s a structural shift. Tariff pauses have created a “buy now, pay later” environment for growth stocks. EY’s stability thesis and Cramer’s demand narrative align to suggest that the current dip is the last chance to secure positions in AI and healthcare disruptors like Hinge Health and Chime.

The window is closing. As markets stabilize post-July, valuations will rise. For investors, the question isn’t whether to act—it’s whether to miss the next leg of growth.

Invest now in the volatility—before stability makes it too late.