NXP Semiconductors N.V. (NASDAQ: NXPI) shows a strong long-term bullish setup according to Elliott Wave analysis. The monthly chart suggests that the stock completed a large corrective structure and has now entered a new bullish phase. The company, a key global player in the semiconductor industry, appears ready to extend its uptrend as long as it stays above key support levels.
The rally from the 2011 low unfolded as a clear five-wave impulse, completing wave (I) in early 2020 peak. After that, the price corrected very sharp and deeply in wave (II) and concluded around $58.32, which serves as the invalidation level for the current strcutre. This means that the long-term bullish outlook remains valid as long as the price holds above this level.
Early Stages of a Powerful Third Wave Advance:
After finishing wave (II), NXP Semiconductors began a new upward phase within wave (III). Inside this wave, the stock has already completed subwaves ((1)) and ((2)), suggesting that wave ((3)) is now in progress. In Elliott Wave theory, wave ((3)) is often the strongest and longest wave of an impulsive cycle. The Fibonacci extension targets for wave ((3)) fall between $613 and $1471, implying a potential 2x to 6x upside from current levels. This range aligns with the 100%–161.8% Fibonacci extension of wave ((1)), giving a clear technical target zone for long-term investors.
From a fundamental perspective, NXP Semiconductors continues to benefit from the rising demand for automotive chips, 5G infrastructure, and Internet of Things (IoT) devices. As more industries adopt semiconductor technology, the company’s diverse portfolio and strong R&D focus provide a significant edge.
These favorable trends support the Elliott Wave structure, reinforcing the potential for accelerated upside momentumduring wave (III).
Conclusion:
In summary, NXP Semiconductors (NASDAQ: NXPI) maintains a clear bullish Elliott Wave structure. As long as the stock trades above $58.32, the trend remains positive. The start of a new impulsive wave suggests potential for long-term gains, making the right side of the market favorable for buyers.
