3 Growth Stocks with Immense Upside These stocks could end up becoming leaders in the growth space during the next quarter, which is why it makes sense to keep them on your shopping list...

Although growth stocks can certainly expose investors to volatility given their lofty valuations and sensitivity to interest rates, their upside potential helps to justify the risk. These are innovative and high-quality companies with earnings that are expected to grow at an above-average rate when compared to the overall market. Choosing wisely in the growth space can lead to jaw-dropping returns and exposure to companies that can potentially change the world, which is why so many investors are willing to sacrifice dividend payments in favor of the upside.

Even though the market continues to keep investors on their toes with rotations, it still makes a lot of sense to consider adding shares of the top growth stocks when opportunity strikes. Several names, in particular, stand out as strong buys after reporting impressive earnings in Q2. These stocks could end up becoming leaders in the growth space during the next quarter, which is why it makes sense to keep them on your shopping list.

Let's take a look at 3 growth stocks with immense upside below.

Upstart Holdings (NASDAQ: UPST)

Part of the allure of growth investing is that you have the opportunity to grab shares of a company that could go on to disrupt an entire industry. That might be the case with Upstart Holdings, as it's a company that is leveraging artificial intelligence to improve the consumer lending industry. Upstart has developed a cloud-based platform that aggregates consumer demand for loans and connects it to its network of the company's AI-enabled bank partners. It's specifically designed to improve consumer access to affordable credit while also reducing the risk and costs of lending for banks.

Upstart clearly has a lot of potential in the fintech sector and is delivering seriously impressive growth at this time. The company's recent Q2 earnings report had plenty of highlights, including total revenue of $194 million, up 1,018% year-over-year, and transaction volume of $2.8 billion, up 1,605%. The company's management also boosted its 2021 fiscal year guidance for revenue from $600 million to $750 million. While the stock can be quite volatile, it's certainly an intriguing growth stock given how the company's platform benefits both consumers and lenders.

MercadoLibre (NASDAQ: MELI)

With MercadoLibre, growth investors are essentially buying into one of the most exciting companies in Latin America. The company has a diverse business model that includes a rapidly growing e-commerce platform, strong third-party logistics solutions, digital advertising services, and an exciting fintech platform. Since the company operates in a region that has yet to fully embrace online shopping and digital payments, there is plenty of room for MercadoLibre to grow in the coming years.

Keep in mind that many of the same pandemic-related trends that benefitted companies like Amazon are translating to strong revenue growth for MercadoLibre as well. In Q2, the company reported net revenue of $1.7 billion, up 102.6% year-over-year, along with $17.5 billion in total payment volume up 72% year-over-year. For evidence that more Latin Americans are taking advantage of MercadoLibre's robust e-commerce platform, take a look at the company's unique active users growth of 47.4% year-over-year to reach 75.9 million in Q2. The bottom line here is that this growth stock has immense upside as more people in countries like Brazil, Argentina, and Mexico embrace internet shopping, which is why it's such a strong option to consider at this time.

Advanced Micro Devices (NASDAQ: AMD)

Finally, we have this leading supplier of microprocessors and graphics semiconductors that are used in computers and other related products. Advanced Micro Devices has tons of momentum working in its favor at this time thanks to the fact that its products are in such high demand. The company's EPYC processors are helping enterprise move their operations into the cloud while AMD's graphics processors are used to power personal computers along with the latest and greatest video game platforms today.

The stock had an epic rally following AMD's stellar Q2 earnings release but has since pulled back, offering investors who missed the initial move a potentially attractive opportunity to add shares. It's important to remember that this stock recently crossed the $100 per share mark after consolidating for a full year, which means it could be in for more upside ahead. Finally, the company's proposed acquisition of Xilinx, if approved, would be a massive strategic move that takes this global semi company to new levels of success.