Apple is set to report its fiscal first-quarter earnings after the market closes Thursday, with analysts anticipating record revenue fueled by the critical holiday sales period. The report is expected to trigger significant volatility, with options market pricing indicating traders are bracing for a potential 4% swing in the stock in either direction by week's end.

The tech giant is projected to post revenue of $138.11 billion and earnings per share of $2.67, each representing an 11% year-over-year increase, according to Visible Alpha. CEO Tim Cook had previously indicated Apple was on track for its best-ever holiday season for iPhone sales following the company's strong October results.

Investor focus will extend beyond the headline numbers. Key areas of scrutiny include:

• AI Strategy Updates: Many are seeking clarity on Apple's artificial intelligence initiatives amid perceptions it has fallen behind competitors.

• Margin Pressure: Analysts from JPMorgan, UBS, and Morgan Stanley have flagged concerns that the ongoing global memory chip shortage could pressure margins, potentially overshadowing strong iPhone sales figures.

• Forward Guidance: The company's outlook for the coming quarters will be critical for sustaining momentum.

Wall Street sentiment remains generally positive, with an average analyst price target of approximately $291—implying about 14% upside from current levels. However, the stock has faced recent headwinds, trading about 11% below its early December peak.

The impending earnings release presents a pivotal moment for Apple to demonstrate both its enduring product strength and its strategic vision for growth in an increasingly AI-driven market.