Here’s how much traders expect Microsoft stock to move after earnings this week

Microsoft (MSFT) is set to report its quarterly results after markets close on Wednesday, and some investors expect the stock to jump to a new record high.

Options prices indicate that traders expect Microsoft shares to move about 4.4% in either direction by the end of the week. A move of that size away from Friday’s close would put shares at about $546, the all-time closing high, or about $500, their lowest price since early September.

Microsoft shares have moved about 6% after the last four earnings reports. In July, shares rose about 4% a day after the company reported better-than-expected earnings driven by cloud computing growth. Shares jumped more than 7% on similarly strong results in April.

Microsoft shares have risen about 26% since the beginning of the year, but shares have been treading water since they jumped to a record high after the July earnings report. Economic uncertainty weighed on stocks throughout the first few months of the year before a series of trade deals and optimism about artificial intelligence helped lift stocks in the summer.

Analysts expect Microsoft to report another quarter of strong growth in revenues and profits. Microsoft’s Azure cloud computing platform, where the company recognizes revenue from hosting AI workloads, is expected to grow 38% year over year.

AI investments will also be in the spotlight. Executives estimated total capital expenditures would reach $30 billion in the quarter to be reported on Wednesday. Bank of America analysts wrote in a note last week that an increase in Microsoft’s capital expenditures guidance could give the stock a post-earnings boost.

Analysts are overwhelmingly bullish on Microsoft stock, with all 16 analysts tracked by Visible Alpha with current price targets rating the stock a “buy.” The average price target of about $640 represents about a 20% upside from the stock’s intraday price on Monday.