3 Growth Stocks for Getting Rich in 2023  (2024)

The Nasdaq is roaring higher by about 37% so far in 2023, a return that many investors would not have expected. While mega-cap tech has been a significant driver of the gains, growth stocks have been coming back to life this year too. Now, it’s got investors wondering about the top growth stocks for 2023.

The environment remains tough. We’ve got mixed data, a hawkish Fed, and skittish investors trying to put money to work but afraid of the next shoe that could drop.

Generally speaking, that type of environment has not boded well for growth stocks, even if they are of high quality. Further, a recession has not come to fruition. If these companies can continue to churn growth, then perhaps more upside momentum is coming.

Let’s look at a few of the top growth stocks for 2023.

Wealth Building Stocks: The Trade Desk (TTD)

At this week’s high, The Trade Desk (NASDAQ:TTD) was down less than 20% from its all-time high. While that still may seem like a lot, realize that many previous growth stock winners remain down 40% to 50% (or more) from their highs.

The Trade Desk stands in a league of its own as a top-tier name. It was one of the last stocks to give out too, topping in November 2021. That was around the same time as the Nasdaq hit its peak. While the stock did fall harder than the index (as one would expect), management didn’t fail shareholders.

Not only did the company continue to grow its top- and bottom-line, but it remained profitable and free-cash flow positive. That statement goes not only for the 2022 bear market, but also for the 2020 Covid-19 situation and the ensuing fallout in online ad spend

Analysts expect roughly 22% revenue growth this year and next, with earnings growth just under the 20% mark. That’s fairly impressive for a firm with a long runway.

AI-Related Boom Stocks: Upstart Holdings (UPST)

UpstartHoldings (NASDAQ:UPST) is a stock that investors need to be careful with because of its volatility. Case in point? Many short-term bulls are quick to highlight that the stock is working on its 10th weekly gain in the last 11 weeks. They also point out that from the May 1 low to the recent high, shares are up more than 400%.

While impressive, let’s also remember that the stock fell 97% from its high in October 2011 and bottomed less than three months ago.

Upstart is catching a wave of bullish momentum thanks to its connection to AI.

This comes as the company notesit “pioneered the application of artificial intelligence to lending, enabling a system that is dramatically more efficient and more accurate for both borrowers and lenders. Rapid developments in AI foreshadow a world where the right borrower is automatically approved at the right price, instantly and effortlessly.”

It must be reiterated that this is a volatile and high-risk, high-reward proposition. Upstart is not for everyone. Even if the stock tripled from the recent high, it still will not have recouped even half of its bear-market losses. That serves as both a warning sign and an opportunity.

Wealth Building Stocks: Ark Innovation ETF (ARKK)

For investors who yearn for a more diversified way to play in growth stocks for 2023, consider the Ark Innovation ETF (NYSEARCA:ARKK).

The ARKK ETF caught a lot of flack for the way it imploded in the bear market, but now that it’s regained some momentum, shares have been trading much better. In fact, the ETF consolidated in a somewhat tight $10-range for several months, before recently breaking out over the Q1 and Q2 highs just a few days ago.

The ETF took a rather large hit on Thursday July 20, as Tesla (NASDAQ:TSLA) — its top holding — had a bearish response to earnings. Coinbase (NASDAQ:COIN), Roku (NASDAQ:ROKU), Zoom Video (NYSE:ZM) and Block (NYSE:SQ) round out the top five.

While investors may prefer to pick their own stocks, an ETF does give a diversified approach to investors who want exposure to growth stocks and high return stocks, but not the risk that individual stocks can carry.

On the date of publication, Bret Kenwell held a long position in TTD and ZM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.