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There’s been a lot of hype around artificial intelligence, and AI stocks have helped propel the stock market to record highs. Meanwhile, gold stocks have quietly outperformed AI chip stocks.

Based on the MSCI Gold Miners Index, gold stocks have gained around 135 percent so far in 2025.

In contrast, MSCI’s index of major global semiconductor firms is up 40 percent.

The gold price itself is up around 49 percent on the year and is on track for its best year since 1979. The yellow metal is up over 87 percent since January 2024.

According to a Bloomberg report, “In addition to central bank buying, the metal has also been supported by Federal Reserve rate cuts, the trend of de-dollarization and rising holdings in gold-backed exchange-traded funds.

In the early months of the gold bull rally, gold stocks lagged, but they have played catch-up in recent months.

Newmont Corp. (NEM) and Agnico Eagle Mines Ltd. (AEM) stocks have more than doubled this year. London-listed gold and silver miner Fresnillo Plc (FNLPF) has nearly quadrupled. Meanwhile, Hong Kong’s Zijin Mining Group’s (ZIJMY) shares have gained more than 130 percent in the same period, outpacing China’s AI darling Alibaba Group Holding Ltd. (BABA)

Van Eck Associates Corp. investment strategist Anna Wu called gold miners “one of my most bullish medium thematic calls.” She said gold has a strong safe-haven appeal, “while gold miners are also set to benefit from margin expansion and valuation re-rating.”

Gold’s general appeal isn’t the only thing driving mining stocks higher. Their valuations are much more in line with reality than many AI stocks. The MSCI gold miner index is trading at around 13 times forward earnings estimates. That’s still slightly below the 5-year average. In contrast, the AI chip gauge is at 29 times earnings estimates, well above its 5-year average.

Saxo Markets chief investment strategist Charu Chanana told Bloomberg that there appears to be plenty of upside in the gold mining sector.

“Even after a near-vertical move in the yellow metal, miners’ multiples look undemanding because earnings have run faster than prices. If gold stays near record territory, the cash-flow math still argues for elevated margins.”

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