NXP Semiconductors N.V. is showing a positive long-term setup based on Elliott Wave analysis. The monthly chart indicates the stock has completed a large corrective pattern and entered a new upward phase. The company, a prominent figure in the semiconductor sector, is positioned to continue its uptrend if it remains above key support levels.

The rise from the 2011 low developed as a five-wave impulse, completing wave (I) by early 2020. Following this, the price corrected steeply and concluded at approximately $58.32, the invalidation level for the structure. The long-term positive outlook remains intact as long as prices hold above this level.

NXP Semiconductors has commenced a new upward phase within wave (III) after completing wave (II). The stock has finished subwaves ((1)) and ((2)), indicating wave ((3)) is underway. According to Elliott Wave theory, wave ((3)) is generally the strongest and longest in an impulse cycle. Fibonacci extension targets for wave ((3)) range from $613 to $1471, suggesting potential for significant gains from current levels.

NXP Semiconductors benefits from increasing demand for automotive chips, 5G infrastructure, and IoT devices. The company’s portfolio and R&D focus provide a competitive edge, enhancing the potential for upward momentum during wave (III). As long as the stock remains above $58.32, the trend is expected to stay positive.

We are looking at a compelling long-term bullish setup in NXP Semiconductors, based on an Elliott Wave structure that suggests the stock is in the early stages of a powerful third wave. This pattern points toward significant upside potential from its current position in November 2025. The core idea is that a major corrective phase ended back in 2020, and we are now in a strong upward trend.

This technical picture is getting a boost from strong industry performance. The latest Semiconductor Industry Association (SIA) report from October 2025 showed global chip sales climbing 12% year-over-year, largely driven by the automotive and industrial sectors where NXP is a leader. NXP’s own Q3 2025 earnings, released just last week, beat expectations on both revenue and guidance, citing record demand for its automotive radar and battery management systems.

For the coming weeks, this outlook favors bullish options strategies that can leverage a sustained move higher. We should consider buying call options with expiries in the spring of 2026, targeting at-the-money or slightly out-of-the-money strikes to capture the anticipated acceleration. This provides exposure to the upside while defining our maximum risk to the premium paid.

Another approach is to sell cash-secured puts at strike prices well above the critical long-term support level of $58.32. This strategy allows us to collect premium with the view that the stock will remain strong, or to acquire shares at a lower effective price if a pullback occurs. Given the recent strength, selling puts around the $280 level could be an attractive way to express this bullish view.

It is crucial to remember that the entire bullish structure is invalidated if the price breaks below $58.32. We saw how sharp the correction was back in 2020 when Wave (II) bottomed, serving as a reminder that even strong uptrends have pullbacks. Therefore, using strategies like bull call spreads could be prudent to reduce the cost of entry, especially if implied volatility has risen on the back of recent positive news.