Microsoft (NASDAQ:MSFT) recently joined Apple as the second American company worth over $2tr, thanks to its share price reaching an all-time high.

The business was founded in 1975 with its Windows operating system as its main product. That is not the case today, as the Software maker now carries on business in three segments – Productivity & Business Processes, Intelligent Cloud, and Personal Computing.

Microsoft hits a $2tr valuation

The Microsoft share price has gone up by 600% since Satya Nadella became the CEO in 2011. And given that the tech stock has doubled in the last two years alone, it doesn’t look like this growth is slowing down to me. That’s quite an impressive display for a chief executive in my eyes.

This growth is being driven by, among other things, the demand for new products such as Microsoft Teams. The app added 95 million users in 2020 alone. What’s more impressive is Teams saw its user numbers grow by 894% between March and June 2020. Overall, this single product generated $6.8 billion revenue in last year. All these factors have helped Microsoft share price to keep rising, and I don’t think it is about to stop now.

Azure: a catalyst for the Microsoft share price

Microsoft Azure, which is part of its Intelligent Cloud segment, has been another potent source of revenue for the company. Azure revenue was up by 50% in its FY21 Q3 results released in April this year. 

The cloud business has experienced exponential growth in recent times. And that’s despite the fact it faces tough competition from the likes of  Amazon Web Services and Google Cloud. 

I believe that the cloud division will continue to bring more revenue for Microsoft. And it seems other investors agree. Piper Sander, an analyst at Brent Bracelin, predicts Microsoft Azure to be the company’s largest source of revenue in 2022. Personally, I believe the Microsoft share price will continue to rise as its various products and services continue to expand.

Windows 11: How far can it push the Microsoft share price up?

Microsoft unveiled Windows 11 operating system on 24 June 2021. The company stated that Windows 11 will be available for free download by existing Windows users during the 2021 holiday season. It is the biggest upgrade to the Microsoft PC operating system in six years. 

Windows 11 comes with many new features that I believe will spark new interest in Microsoft and other users. Some of these include a new user interface, performance upgrades, a revamped Microsoft Store for downloading apps, and the ability to run Android apps directly from a PC.

A revamped operating system could attract many new and existing customers to the platform. Needless to say, this will likely result in additional sales, which is undoubtedly good news for the Microsoft share price.

The risks that lie ahead

As promising as the company’s performance has been, it’s certainly not without its risks. The software industry is a highly competitive one. Its biggest competitors being Apple, Amazon, and Google. Each of these rival firms offer similar or alternative products that could sway existing customers away. This is especially true if Microsoft cannot innovate new valuable features for its products or services. 

But research & development is an expensive process that doesn’t always yield a good result. Companies can invest millions into creating new products, only to discover it’s no longer economically viable by the time it’s ready for launch.

Having said that, I still believe that the Microsoft share price will keep rising based on its track record of innovating and adapting its technology to meet the shifting demands of customers. Therefore, I would consider adding this stock to my portfolio.