NXP Semiconductors N.V. is showing a positive outlook for the long term based on Elliott Wave analysis. The monthly chart reveals that the stock has completed a large corrective pattern and is now in a new upward phase. As a leading company in the semiconductor industry, NXP is likely to continue its upward trend as long as it stays above important support levels. Since the low in 2011, the stock has risen in a five-wave pattern, finishing wave (I) by early 2020. After that, it experienced a sharp correction, ending around $58.32, which is a critical level for this pattern. The long-term positive view remains as long as the price stays above this point. NXP has started a new upward phase in wave (III) after completing wave (II). It has finished subwaves ((1)) and ((2)), which means wave ((3)) is currently in progress. According to Elliott Wave theory, wave ((3)) is usually the strongest and longest in this cycle. The Fibonacci extension targets for wave ((3)) suggest it could reach between $613 and $1471, indicating significant future gains. NXP Semiconductors is well-positioned due to rising demand for automotive chips, 5G infrastructure, and IoT devices. The company’s strong portfolio and focus on R&D give it an advantage, enhancing the potential for upward movement in wave (III). As long as the stock stays above $58.32, the positive trend is expected to continue. We see a strong long-term bullish opportunity in NXP Semiconductors, based on an Elliott Wave pattern suggesting the stock is just beginning a powerful third wave. This pattern hints at a significant upside potential from its current position as of November 2025. The key point is that a major correction ended in 2020, and now we are in a strong upward trend. This positive technical outlook is supported by strong industry performance. The most recent report from the Semiconductor Industry Association (SIA) in October 2025 showed that global chip sales increased by 12% year-over-year. This growth is mainly driven by the automotive and industrial sectors, where NXP excels. NXP’s Q3 2025 earnings, released just last week, exceeded expectations in both revenue and guidance, highlighting record demand for its automotive radar and battery management systems. In the coming weeks, this outlook supports bullish options strategies that can take advantage of the upward trend. We should consider buying call options that expire in the spring of 2026, targeting at-the-money or slightly out-of-the-money strikes to capture potential growth. This strategy offers upside exposure while limiting our maximum risk to the premium paid. Another option is to sell cash-secured puts at strike prices well above the critical support level of $58.32. This allows us to collect premiums while believing that the stock will remain strong. Alternatively, if there is a pullback, we can acquire shares at a lower effective price. Selling puts around the $280 level could be an appealing way to express this bullish sentiment. It’s important to note that the entire bullish outlook will collapse if the price falls below $58.32. We witnessed a sharp correction in 2020 when wave (II) bottomed, reminding us that even strong uptrends can face setbacks. Therefore, using strategies like bull call spreads can be wise to reduce costs, especially if implied volatility has risen following the recent positive developments.

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