Shares of Microsoft (NASDAQ: MSFT) climbed 15.6% last month, according to data provided by S&P Global Market Intelligence. Investors responded favorably to news related to the company's proposed acquisition of gaming leader Activision Blizzard. The stock also charged higher thanks to momentum in the tech sector, which was driven by changing economic expectations.

March was a relatively quiet news month for Microsoft, which published quarterly financials in the prior month. There were some developments regarding the company's planned acquisition of video game developer Activision Blizzard. The deal was announced over a year ago, but it's been delayed as various governments scrutinize the deal under antitrust regulations. There was positive news on that front, as U.K. regulators officially dropped some of their concerns that have inhibited the combination. Microsoft continued to forward the deal by securing a long-term streaming deal for Activision's popular Call of Duty franchise in Japan. Activision would represent under 2% of Microsoft's total revenue, so it's not exactly a game changer for the tech giant. Still, the deal would make Microsoft one of the largest players in the high-growth gaming industry, enhancing one of its lucrative business segments.

Microsoft has also enjoyed some momentum thanks to its burgeoning artificial intelligence (AI) business. The company has established itself as a major player in the space thanks to its partial ownership of OpenAI and the resulting collaborations with the AI software developer. Investors are enamored with the potential business applications of AI right now, and announcements on the topic have been moving share prices. Microsoft hosted a "fireside chat" in March, during which it said its Office suite would soon get an upgrade with AI integrations.

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Source Fool.com