From Gold to AI: Canada’s Big Sector Rotation

Two TSX plays for a rotating market, Lundin Gold as a gold hedge and WELL Health as an AI-health rebound candidate.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published October 14, 2025 8:15 pm EDT

Key Points

Lundin Gold benefits from soaring gold prices but is highly dependent on metal prices and operational risks.
WELL Health is expanding with AI and SaaS in healthcare, showing record revenue but facing execution and regulatory risk.
Market rotation favours gold as a defensive hedge and AI-health stocks for growth when sentiment improves.

There’s a rotation happening when it comes to safe haven stocks, with multiple areas proving to explode during this year’s volatile market cycle. Markets often cycle between fear and optimism, so when macro risks or inflation dominate, investors tend to flock to hard assets. Enter: gold, with recent record performance.

However, as sentiments improve, capital rotates into higher growth opportunities. These sectors can include technology, or more specifically lately, artificial intelligence (AI). We’ve now begun to see a rotation into gold, as well many AI stocks are gaining momentum. So, let’s look at two that could perform well in 2025 and into 2026 as the markets continue their rotation back to growth.

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies — Source: Getty Images

LUG

First, let’s look at a gold stock that still provides an opportunity. Lundin Gold (TSX: LUG) is a gold mining company with principal assets in Fruta del Norte in Ecuador. It also holds rights to various metallic mineral concessions and related exploration assets. And, of course, from its exposure to gold, it benefits from the recent gold price rally.

The rally has been directly tied to the stock, with the price of gold surging past US$4,000 per ounce. This benefited LUG stock directly, with the latest results showing strong earnings and free cash flow from higher gold prices.

The issue? LUG is a pure gold play, with valuation highly tied to gold’s future. So if gold starts to cool, the upside could evaporate quickly. Mining is also capital-intensive, with costs, geology and technical delays all playing their part. So as the gold phase remains strong, LUG looks like a great purchase. However, as the tides turn, it won’t be an asset to hold long term.

WELL

Yet there could still be opportunities to get in on AI stocks that are due for a rebound as the rotation goes back towards tech stocks. One opportunity is WELL Health Technologies (TSX: WELL), a digital health and clinic operator. It’s Canada’s largest owner and operator of outpatient health clinics, providing electronic medical records (EMS) and software as a service (SaaS) to clinicians.

The company has pushed aggressively into AI, and it’s clearly working. In the second quarter, the AI stock hit record revenue, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), as well as net profit. This led to an upgrade in guidance, and multiple launches of further platforms.

The AI stock also rebranded and consolidated its cybersecurity assets into CYBERWELL, combining multiple acquisitions into a cohesive division aimed at recurring revenue. All together, it’s an AI stock focusing on the one thing everyone needs: healthcare. And it’s creating a way to make healthcare more efficient and cost-effective.

Of course, it’s not without risks. There has been volatility in the past, and its valuation now depends heavily on execution, regulatory acceptance in health data and privacy, as well as the adoption by physicians. Therefore, it may continue to be a balancing act as the stock expands.

Bottom line

All together, there is an opportunity with both of these stocks. LUG may benefit during uncertainty or as a hedge, while WELL can be an option during optimism and to satisfy risk appetite. In the near term, WELL may ride the narrative wave of AI, while LUG may slow as gold cools. So keep an eye on both for now.