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Alphabet's next earnings report is set to be released Wednesday afternoon, with shares seen potentially hitting fresh records following the results.

Revenue is expected to have grown in the first quarter, with a small decline in profits as Alphabet and other tech giants continue their AI spending push.

Google parent Alphabet is due to report earnings Wednesday afternoon, with shares seen potentially hitting fresh records following the results.

Based on recent options pricing, traders expect Alphabet's (GOOGL) stock could swing up to 5% in either direction by the end of the week. From Friday's record close just above $344, a move of that size could lift shares to a new high near $362. The low end of that range could see shares slip below $327, giving up some of their recent gains amid a broader tech rally.

A string of recent high-profile deals, perceived wins for Google's Gemini, and some renewed optimism about AI demand have all helped boost enthusiasm for Alphabet's stock lately, with the shares up about 10% from where they started the year.

A strong performance Wednesday could bolster confidence in Alphabet's stock, though the tech giant and many of its peers could also face pressure around their AI spending plans.

Citi analysts recently lifted their price target for the stock to $405 from $390, and said they will be looking for indications that engagement with Google's Gemini features is growing, along with updates on advertising revenue and Google Cloud demand.

Alphabet is expected to report first-quarter revenue of about $106.97 billion, up 19% year-over-year, according to estimates compiled by Visible Alpha, though earnings per share are seen dropping 3 cents to $2.73 as the company invests heavily in AI.

Wall Street analysts are largely bullish on the tech giant, with 12 of the 14 analysts with current ratings tracked by Visible Alpha calling Alphabet a "buy," along with two neutral ratings. Their average price target of $382 would suggested upside of about 11% from Friday's close.

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