Saturday's game was never competitive and North Carolina put up a season-high 56 points before halftime on the strength of 10-for-15 shooting from 3-point range and finished 15 for 27 from behind the arc.
North Carolina led 56-31 at halftime and pushed the margin to 73-38 on Davis' 3 with 14:53 remaining.
Armando Bacot recorded his 16th double-double of the season, scoring 18 points and grabbing 13 rebounds.
It was the fourth game in eight days for the Tar Heels (15-6, 7-3 ACC) who have won three straight. The Tar Heels never trailed in a contest in which the members of the 1981-82 national championship team were honored before tip-off.
"Just to see so many former players and coaches and you know, Carolina family here at the game, and being able to experience this place and being able to cheer on the current guys, that's the thing that was fun for me," UNC coach Hubert Davis said. "There's nothing better than a Saturday afternoon game in the Smith Center."
Brady Manek led the first-half blitz with four 3s and seven Tar Heels recorded a 3. The 56-first half points were just two shy of what North Carolina tallied in a 58-47 win over Boston College on Wednesday night.
In addition to Bacot's double-double, he recorded six blocked shots. Caleb Love scored 21 points and R.J. Davis and Manek scored 17 apiece.
The Tar Heels improved to 12-0 at home this season.
Terquavion Smith scored 34 points and Jericole Hellems 25 for N.C. State.
The Tar Heels lead the all-time series, 162-79, winning 34 of the last 39 and 51 of the last 63 games against the Wolfpack.
North Carolina travels to Louisville for a Tuesday contest.
Kevin Keatts' struggling Wolfpack (10-12, 3-8) will try to end their recent tailspin Wednesday night in a home matchup Syracuse.