# TSMC: Cracks in Tech Leadership

> TSMC's record earnings mask growing risks to long-term profits.
- Title: TSMC: Cracks in Tech Leadership · Seekingalpha | Shortify
- Summary: TSMC's record earnings mask growing risks to long-term profits. TSMC's aggressive 2026 CapEx cycle threatens profitability despite record earnings.
- Keywords: tsmc, capex, 2026, gross margins, free cash flow, record earnings, wall street bears, money, business, Cracks, Tech, Leadership
- Source: Seekingalpha — https://seekingalpha.com/article/4959425-tsmc-the-cracks-are-showing
- Author: Bears of Wall Street
- Published: 2026-10-29T16:23:12+00:00
- Read time: 1 min
- Topics: tsmc, capex, 2026, gross margins, free cash flow, record earnings, wall street bears, money, business
## TSMC earnings
TSMC posted record earnings but I reiterate a SELL rating due to emerging risks.

> TSMC maintains global technological leadership and posted record earnings
## 2026 CapEx cycle
TSM plans $60-$64 billion in CapEx for 2026 with further increases expected.

> TSM's aggressive CapEx cycle, with $60-$64 billion planned for 2026
## Profitability risks
Costly technology transitions and international expansion pressure gross margins.

> Gross margins are pressured by costly technology transitions (N2, N3) and international expansion
## Key takeaway

TSMC's aggressive 2026 CapEx cycle threatens profitability despite record earnings.