Piper Sandler analyst Harsh Kumar has reiterated a Buy rating on Nvidia (NVDA) with a $225 price target, naming the chipmaker its top data center investment pick for 2026. Kumar's bullish stance is based on Nvidia's dominant leadership in AI infrastructure and surging data center demand, which drove 65.22% revenue growth over the past year.
The analyst highlighted three key drivers for optimism: Nvidia's sustained technology lead, expanding partnerships, and a robust software platform. These factors are expected to keep competitors at bay as global demand for AI computing power continues to accelerate.
A major catalyst for this outlook is Nvidia's upcoming Vera Rubin rack-scale computing platform, which entered production and is scheduled to begin shipments in the second half of 2026. Unveiled at CES 2026, Vera Rubin is a full AI system combining six chips to operate as a single powerful computer, representing Nvidia's most advanced offering to date.
Wall Street projects remarkable financial milestones for Nvidia. Analysts forecast approximately 50% revenue growth for fiscal 2027 (ending January 2027). If current profit margins hold, Nvidia could generate around $170 billion in profits, potentially surpassing Alphabet to become the world's most profitable company. This profit surge is tied to the massive global buildout of AI data centers, with Nvidia estimating worldwide data center capital expenditures could reach $3 trillion to $4 trillion by 2030.
The anticipated profit growth could propel Nvidia's market capitalization past historic thresholds. With projected profits of $170 billion and a typical valuation of 40 times forward earnings, the company's market cap could reach $6.8 trillion during 2026, making it the first firm to breach the $6 trillion mark.
Currently, NVDA trades at roughly 24.5 times forward earnings, which Kumar views as reasonable given the growth trajectory. The broader analyst consensus remains strongly positive, with a TipRanks consensus rating of Strong Buy based on 39 Buy ratings. The average price target is $264.97, implying 43.34% upside from current levels.
