Nvidia (NVDA) Stock: Piper Sandler Picks Chip Maker as Best Data Center Play for 2026

TLDR

• Piper Sandler rates Nvidia top data center investment with $225 price target
• Vera Rubin AI platform in production with H2 2026 shipments expected
• Analysts forecast 50% revenue growth and $170 billion profits for fiscal 2027
• Stock trades at 24.5x forward earnings with 43% upside to consensus target
• Nvidia positioned to overtake Alphabet as world’s most profitable company

Piper Sandler analyst Harsh Kumar has named Nvidia the top data center stock for 2026. The firm maintains a Buy rating with a $225 price target on shares.

NVIDIA Corporation, NVDA

Kumar ranks #9 among over 10,000 analysts on TipRanks. He has a 72% success rate and 35% average return per rating.

The analyst points to Nvidia’s AI infrastructure leadership as the main driver. The company delivered 65.22% revenue growth over the past year while expanding its technology lead.

NVDA currently trades at 24.5 times forward earnings. Kumar views this valuation as reasonable given the company’s growth rate and market position.

Vera Rubin Production Underway

Nvidia’s Vera Rubin computing platform is already in production. The company expects first shipments in the second half of 2026.

Vera Rubin combines six chips into one integrated AI system. Nvidia unveiled the platform at CES 2026 as its most advanced data center offering.

Kumar expects Vera Rubin to boost revenue starting later this year. The system addresses strong demand from major cloud customers building out AI infrastructure.

Profit Leader Target in Reach

Wall Street projects Nvidia will generate $170 billion in profits for fiscal 2027. That forecast would make it the world’s most profitable company, surpassing Alphabet’s expected $146 billion.

Over the past 12 months, Alphabet earned $125 billion while Nvidia came in under $100 billion. The gap narrows quickly with Nvidia’s 50% projected revenue growth versus Alphabet’s 14%.

Global data center spending drives the expansion. Nvidia estimates capital expenditures will reach $3 trillion to $4 trillion by 2030. Its GPUs represent up to half of data center hardware costs.

Market Cap Milestone Ahead

The profit surge positions Nvidia to cross $6 trillion in market capitalization during 2026. Shares currently trade at a $4.6 trillion valuation.

At 40 times forward earnings and $170 billion in profits, the company could reach $6.8 trillion. That would make Nvidia the first company to breach the $6 trillion threshold.

Wall Street consensus shows a Strong Buy rating based on 39 Buy recommendations, one Hold, and one Sell. The average price target sits at $264.97, implying 43.34% upside from current levels.

Piper Sandler’s $225 target suggests 21% gains. Kumar’s bullish call stems from Nvidia’s technology advantages, expanding partnerships, and software ecosystem strength.

The analyst sees Vera Rubin as a key catalyst for the second half of 2026. Production is on track and customer demand remains robust for next-generation AI computing systems.

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