Investors with risk tolerances and investment horizons should have growth stocks in their portfolios. Preserving and growing capital is essential, and missing out on potential gains can be harmful.

However, not all growth stocks are created equal. Some are market leaders, while others fall far behind the curve.

This article examines three growth stocks you should consider adding to your portfolio to unlock more value. These companies are pushing the envelope in research and development and setting new market trends that their competitors will follow.

So here are three growth stocks you should consider buying in December.

Tesla (TSLA)

Tesla (NASDAQ:TSLA) has aggressively innovated in the electric vehicle market over the past few years. But it has also made strides in other areas, including battery storage and sustainable energy solutions.

Despite the disappointing Cybertruck announcement and lackluster delivery numbers, I believe TSLA can deliver strongly for investors.

One piece of evidence is that although Wall Street rates TSLA as a “Hold,” some analysts, such as Daniel Ives from Wedbush reiterated their “Buy” thesis and gave it a price target of $310 per share. This means there could be a significant upside in store for investors.

Furthermore, TSLA’s revenue and EPS forecasts remain strong. Revenue is expected to rise to $124.24 billion next year, up 23.17% from 2023. While EPS is expected to surge 31.86% to $4.48.

This then makes TSLA one of those growth stocks investors should keep their eyes on.

Shopify (SHOP)

Shopify (NYSE:SHOP) was a game changer for the e-commerce industry. It allowed entrepreneurs from all budgets and backgrounds to launch their online stores and helped facilitate the explosion of interest for side hustles like drop shipping and affiliate marketing.

SHOP also continues to innovate thanks to its heavy research and development budget. This year, it unveiled its generative AI chatbot to help people run their stores. It also launched integrations for users to sell their products on multiple marketplaces, such as eBay and Amazon (NASDAQ:AMZN).

These new features will likely strengthen Shopify’s competitive moat and keep its recurring revenue flowing, which makes SHOP one of those growth stocks to buy.

Nvidia (NVDA)

Nvidia (NASDAQ:NVDA) has so many forks in the fire that it can continue to deliver substantial gains to investors. It has its hand in the AI, GPU and blockchain industries, which are expected to grow in size and prominence.

NVDA made it on my list due to its influence on the crypto market. Its GPUs are used in many modern mining rigs. When cryptocurrencies exploded, so did the price of NVDA’s GPUs, previously primarily used for high-end gaming.

I believe that NVDA can still take its share price to new heights. The main argument against investing in the company is due to its valuation. However, higher earnings also come with a higher intrinsic value, which will offset this valuation problem if investors are bullish on its long-term potential.

Notably, its trailing P/E and P/S ratios are lower than their forward equivalences. This suggests that Wall Street is bullish that they will lower in the future, and thus is priced at a relatively cheaper level than what is expected.

With the argument that NVDA is too expensive curbed by forward expectations, the company’s potential to continue to deliver gains makes it one of those must-have growth stocks to add to your portfolio.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines