The stock market was broadly lower on Tuesday. Many market participants had their eyes squarely on Congress and the White House, with politicians wrangling over government spending and the need to borrow more money at the federal level. Major market indexes were down as much as two-thirds of a percent at midday.

However, bullish investors weren't entirely absent from the market. Big gains in Palantir Technologies (PLTR 1.29%) and DaVita (DVA -0.70%) showed that the opportunities for picking winning stocks remain robust, and both of these companies could potentially see their share prices keep climbing from here if they can keep up the strong momentum they've built.

Read on to learn more about why these stocks are ascending on Tuesday.

Palantir makes an AI push

Shares of Palantir Technologies were up more than 20% early Tuesday afternoon. The software company's first-quarter financial report showed that the company has jumped onto the artificial intelligence bandwagon in a big way, and investors liked what they saw.

Palantir's financial numbers were strong. Revenue growth of 18% year over year to $525 million was somewhat subdued compared to faster growth rates in the past. However, Palantir posted a modest profit of $19 million even before making adjustments for extraordinary items. That worked out to $0.01 per share and reversed a larger year-earlier loss, and it was the second quarter in a row that Palantir was profitable.

Other key metrics show further progress. Customer counts were up 41% from 12 months ago, with the software service being especially popular among U.S.-based clients. Co-founder/CEO Alex Karp pointed to the new artificial intelligence platform as driving unprecedented depth of engagement from clients, and Palantir has high expectations for that part of its business going forward.

That optimism showed up in its 2023 outlook, which now projects $2.185 billion to $2.235 billion in revenue and sustained profitability in each quarter of the year. That's a great achievement for Palantir, but if AI takes off the way many expect it to, the company could see even bigger profits in the months and years to come.

DaVita looks healthy

Meanwhile, shares of DaVita climbed 14% in early-afternoon trading on Tuesday. The dialysis treatment specialist reported first-quarter financial results that reflected broader economic weakness but showed the company's resilience in the face of those headwinds.

DaVita's numbers were mixed. Revenue inched higher by 2% year over year to $2.87 billion. However, a sizable rise in overhead expenses caused operating income to fall from year-ago levels. Net income attributable to DaVita came in at $115.5 million, down by 29% from the first quarter of 2022. Despite sizable buybacks that reduced share counts, adjusted earnings of $1.25 per share were also significantly lower from last year's figures.

Yet what really got investors' attention was DaVita's announcement of much higher guidance for the remainder of 2023. The company now expects adjusted earnings of between $6.20 and $7.30 per share, up by between $0.35 and $0.65 per share from its previous guidance. Similarly, DaVita boosted its range for free cash flow by $100 million, now expected to bring in between $750 million and $1 billion.

DaVita has a reputation as a stock that Warren Buffett has picked, yet it represents only a tiny portion of the money that the legendary investor oversees. Nevertheless, DaVita provides services that patients desperately need, which protects against economic risks that many other companies face to a greater extent.