The highly touted newcomer will have surgery next week and be sidelined at least two months before beginning rehabilitation, Wolfpack coach Chuck Amato told reporters Thursday.
Davis broke the bone just above his left ankle while trying to make a tackle.
"You can't say it was a disappointment because it's football," Davis told The (Raleigh) News & Observer. "Things like this happen. I could see if it was my senior year, it would be a disappointment. But it's just my freshman year.
"It wasn't a life-ending injury or anything. It could have been worse."
The 5-foot-10, 171-pound Davis was rated the nation's best prep cornerback by one recruiting service when he starred in football and track at Northern Durham High. He holds the state 4-A high school record in the long jump and was the state indoor champion in the long and triple jumps.
His recruitment began a small war of words between UNC coach John Bunting and Amato, who told media on national signing day of how he crooned Italian love songs to Davis to get him to go to State.
Davis had impressed Wolfpack coaches in preseason practices, and he was listed as the backup at right corner.
State had shifted cornerback Greg Golden to tailback in preseason drills because of Davis' early play, and Amato also had indicated that Davis might return kickoffs and punts.
Davis was expected to compete on State's track team this year, but he said he was unsure whether he would be healthy enough.