NVIDIA (NASDAQ: NVDA) remained Piper Sandler's top large-cap data center stock pick, with the firm reiterating its Overweight rating and $225.00 price target.

The analyst said Nvidia's sustained technology leadership, expanding strategic partnerships, comprehensive software ecosystem, and attractive valuation of approximately 24.5x next-twelve-month earnings underpinned its positive outlook. Piper Sandler highlighted expected performance gains from the Vera Rubin rack architecture, with revenue contributions anticipated in the second half of 2026.

Beyond Nvidia, the firm noted that Microchip Technology was expected to benefit most from a recovery in the analog semiconductor space, citing strong backlog trends in the March and June quarters. Piper also reiterated its constructive view on its top small-cap idea, citing multiple upcoming catalysts including a Phase 3 milestone at Walmart and expanding programs with UPS.