Shares of precision components manufacturer NN surged 68% during morning trading. The trigger for this investor optimism was the company's announcement of new multi-year contracts to supply liquid cooling systems for Nvidia's artificial intelligence server racks.

NN's management emphasized that the new agreements not only complement previously signed deals but also significantly expand the product portfolio for AI infrastructure. To fulfill the obligations, the company plans to deploy 52 specialized machines, of which 50 will be used for series production and two for prototyping. Notably, all production capacity has already been fully contracted.

To ensure uninterrupted supply, NN is scaling its presence in Asia. The plant in Wuxi, China, will add 47 new machining centers, including 30 modern CNC machines and five repurposed lines previously used in the automotive industry. Combined with previously announced capacity, the total number of CNC machines at the facility will grow from 200 to 250. Installation of the 47th machine is scheduled for November this year. The Wuxi plant will supply components to Nvidia's Asian supply chain in China, Taiwan, and Vietnam.

CEO Harold Bevis noted that the data center and power grid business is already the second-largest segment in NN's portfolio, and the company aims to make it the absolute leader in sales volume. In the first quarter of 2026, the company launched a proprietary stainless steel product line specifically developed for the liquid-cooled data center market.

The new contracts fit perfectly into NN's previously announced guidance of securing $80 million to $90 million in new orders in 2026. Investors are awaiting further positive news: in early August, along with the release of second-quarter results, the company plans to revise its revenue and EBITDA guidance for 2026 and 2027 upward.