Does an AI Supply Chain Partnership With NVIDIA and Palantir Shift the Bull Case for Lowe's (LOW)?

• In October 2025, NVIDIA announced a collaboration with Palantir Technologies to develop an integrated AI technology stack, with Lowe's Companies pioneering its use for optimizing supply chain logistics.
• This partnership places Lowe's at the forefront of applying advanced AI-driven solutions to operational efficiency, signaling ongoing innovation in large-scale retail operations.
• We'll now explore how Lowe's early adoption of advanced AI supply chain technology could influence its current investment narrative.

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Lowe's Companies Investment Narrative Recap

Owning Lowe's Companies stock means believing in its ability to capitalize on long-term growth in home improvement, driven by expansion into the Pro contractor market and gains in operational efficiency. While the company's pioneering adoption of advanced AI for supply chain logistics could enhance inventory productivity in the short term, the most immediate catalyst remains successful integration of recent acquisitions like FBM, and the largest challenge remains the elevated debt load resulting from those acquisitions. At this stage, the impact of the AI partnership has not yet materially shifted the balance on these key factors.

One recent announcement tying into these catalysts is Lowe’s update in August 2025, revising total sales guidance for fiscal 2025 to US$84.5 to US$85.5 billion and forecasting operating margins between 12.1 percent and 12.2 percent. This reset, coming soon after the FBM acquisition and amid rising financial leverage, reflects how the company is managing both opportunity and risk as it executes its growth strategy. Still, for investors, the biggest near-term concern is...

Read the full narrative on Lowe's Companies (it's free!)

Lowe's Companies is projected to deliver $94.0 billion in revenue and $8.4 billion in earnings by 2028. This outlook assumes a 4.0% annual revenue growth rate and an increase in earnings of $1.6 billion from the current $6.8 billion.

Uncover how Lowe's Companies' forecasts yield a $281.84 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have set fair values for Lowe’s between US$147.03 and US$281.84, across seven independent estimates. This breadth of opinion comes as Lowe’s balances new AI-driven supply chain ambitions with the real test of integrating major acquisitions.

Explore 7 other fair value estimates on Lowe's Companies - why the stock might be worth as much as 18% more than the current price!

Build Your Own Lowe's Companies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lowe's Companies research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Lowe's Companies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lowe's Companies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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