Definition of blue chip in finance

A blue chip company is one that is large, globally recognized and financially stable. They typically sell products that are widely used and high quality. Usually, blue chip companies are seen as being low growth, low risk firms and do not suffer as much in poor economic conditions as smaller firms and often follow the performance of the main stock index (S&P500, FTSE100 etc.).

The name blue chip comes from the blue chips used in poker, which have the highest value.