**Gold Miners Significantly Outperform Chip Stocks Amid Gold Rally**
Gold miners have dramatically outshone chip stocks this year, soaring by approximately 135% compared to a 40% increase in chip stocks. This impressive surge has been driven primarily by gold’s remarkable 45% rally, fueled by central bank buying and expectations of rate cuts. Major miners like Fresnillo have experienced extraordinary growth, with shares nearly quadrupling in value.
Despite this strong performance, valuations for gold miners remain attractive, trading at about 13 times forward earnings—significantly lower than tech stocks.
### Gold Miners: The Unexpected Top Performers
While much of the market hype this year has centered around artificial intelligence and the surge in semiconductor stocks, gold miners have actually proven to be the better investment. A gauge of the world’s gold equities from MSCI Inc has soared roughly 135% in 2025, closely tracking gains in the precious metal itself. This puts gold miners on course for their greatest-ever outperformance compared to MSCI’s index of major global semiconductor firms, which have climbed 40%.
This striking divergence highlights a key dynamic in this year’s global markets: even as a fear of missing out (FOMO) drives investors toward AI-related stocks, many are equally enticed by gold’s relentless rally, supported by increasing central bank demand worldwide.
### What’s Driving the Gold Rally?
“Gold and gold miners are one of my most bullish medium-term thematic calls,” says Anna Wu, a cross-asset investment strategist at Van Eck Associates in Sydney. She notes that gold has safe haven appeal, while gold miners stand to benefit from margin expansion and valuation re-rating.
Gold itself has surged over 45% this year, reaching a series of new all-time highs and on track for its best year since 1979. Several factors support this rally, including:
– Heavy central bank purchases
– Anticipated Federal Reserve rate cuts
– The de-dollarization trend globally
– Increasing holdings in gold-backed exchange-traded funds (ETFs)
### Heavyweights Lead the Charge
Among the prominent names in MSCI’s gold miners index, Newmont and Agnico Eagle Mines have more than doubled their value on New York exchanges in 2025. Zijin Mining Group’s shares in Hong Kong have surged over 130%, outpacing gains in China’s AI-favorite Alibaba Group Holding.
London-listed gold and silver miner Fresnillo has been a standout performer, nearly quadrupling in value and becoming the best-performing stock in the FTSE 100 Index.
### Attractive Valuations Compared to Tech
Valuations in the precious metals sector remain far more reasonable than those in tech. The MSCI gold miner index trades at just 13 times forward earnings estimates, which is below the average of the past five years. In contrast, the semiconductor gauge sits at 29 times forward earnings, well above its five-year average.
“Even after a near-vertical move in gold, miners’ multiples look undemanding because earnings have run faster than prices,” explains Charu Chanana, chief investment strategist at Saxo Markets in Singapore.
### Conclusion
Amid the excitement surrounding AI and chip stocks, gold miners have quietly delivered superior gains this year. Supported by strong fundamentals, attractive valuations, and continued central bank demand, the gold mining sector offers investors a compelling opportunity for growth and portfolio diversification.
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https://economictimes.indiatimes.com/markets/commodities/news/gold-stocks-beat-ai-led-chip-rally-with-135-gain-in-2025/articleshow/124301131.cms