NN, Inc. (NASDAQ:NNBR) shares surged 68% on Monday after the precision engineering company announced a series of new multi-year contract awards to supply liquid cooling components for NVIDIA-powered AI data centre racks.
The company said the latest agreements build on previously disclosed contracts and will substantially increase its presence in the rapidly growing liquid cooling market for artificial intelligence infrastructure. NN has committed 52 dedicated production machines to its data centre business—50 for manufacturing and two for sample production—and confirmed that all available production capacity has already been fully allocated.
Manufacturing Capacity Expands to Meet Demand
To support the increased workload, NN is installing 47 additional machining centres at its Wuxi facility in China. The expansion includes 30 new CNC machines alongside five repurposed automotive production centres, complementing the 17 machines announced earlier.
Once complete, the Wuxi plant will operate approximately 250 CNC machining centres, up from around 200 currently.
The company said its Data Center and Electric Grid segment has already become its second-largest business by revenue and is expected to grow into its largest business over time. Alongside AI infrastructure, NN continues to target growth across medical devices, defence and electronics markets.
AI Infrastructure Strategy Gains Momentum
Chief Executive Officer Harold Bevis said the company introduced a purpose-built stainless steel product range for liquid-cooled AI data centres during the first quarter of 2026.
The manufacturing expansion is progressing during the second quarter of 2026 and is expected to contribute to revenue this year, with installation of the 47th new machine scheduled for November.
The Wuxi facility will manufacture components for NVIDIA’s Asian supply chain, serving customers across China, Taiwan and Vietnam.
NN added that the newly awarded contracts remain consistent with its previously issued target of securing between US$80 million and US$90 million in new business during 2026.
The company plans to provide updated sales and EBITDA guidance for 2026 and 2027 when it reports second-quarter results in early August.