TLDR
- Piper Sandler names Nvidia top 2026 data center stock with $225 target and Buy rating
- Vera Rubin computing platform in production, shipping starts second half 2026
- Wall Street projects 50% fiscal 2027 revenue growth and $170 billion in profits
- Nvidia could surpass Alphabet as world’s most profitable company this year
- Consensus Strong Buy rating with average $264.97 price target implies 43% upside
Piper Sandler has named Nvidia its top data center stock for 2026, maintaining a Buy rating with a $225 price target.
The firm’s bullish stance focuses on Nvidia’s AI infrastructure dominance. The company posted 65.22% revenue growth over the past year.
Kumar cites three key drivers: technology leadership, expanding partnerships, and a strong software platform. NVDA currently trades at 24.5 times forward earnings, which the analyst views as reasonable.
Vera Rubin Platform Enters Production
Nvidia’s Vera Rubin computing platform represents a major catalyst for 2026. Kumar expects the system to drive revenue starting in the second half of this year.
The company unveiled Vera Rubin at CES 2026. Unlike a single chip, the platform combines six chips working as one powerful computer. It’s Nvidia’s most advanced system to date.
Nvidia confirmed production has already started. First shipments will go out in the second half of 2026.
Path to $170 Billion in Profits
Wall Street analysts project Nvidia will generate $170 billion in profits for fiscal 2027. That would surpass Alphabet’s expected $146 billion, making Nvidia the world’s most profitable company.
Alphabet generated nearly $125 billion in profits over the past 12 months. Nvidia came in just under $100 billion. But the gap is closing fast.
Analysts expect 14% revenue growth for Alphabet in 2026. For Nvidia’s fiscal 2027, they’re projecting 50% revenue growth.
The surge is tied to global data center expansion. Nvidia estimates worldwide data center spending will hit $3 trillion to $4 trillion by 2030. Its GPUs could account for up to half those costs.
$6 Trillion Market Cap Target
The profit growth could push Nvidia’s market cap past $6 trillion in 2026. The company currently sits at $4.6 trillion.
With $170 billion in projected profits and a 40 times forward earnings multiple, Nvidia could reach a $6.8 trillion valuation. That would make it the first company to cross $6 trillion.
TipRanks shows a Strong Buy consensus based on 39 Buy ratings, one Hold, and one Sell. The average analyst price target of $264.97 suggests 43.34% upside from current levels.
Kumar’s track record includes a 72% success rate and 35% average return per rating. Piper Sandler’s $225 target implies 21% upside, while the broader Street sees even more room to run.
