In stock-market terminology, what is a blue-chip stock?

In stock-market terminology, a blue-chip stock is a stock of an established company with a reputation for financial strength and reliability.

Blue-chip companies are generally large, well-known businesses with long operating histories and widely followed shares. The label is informal rather than a legal classification, so there is no official global list that determines which stocks qualify. Analysts may consider profitability, market leadership, balance-sheet strength, and a record of shareholder returns.

The expression comes from poker, where blue chips traditionally represent the highest-value chips. It became associated with high-quality shares in the early twentieth century, including through the reporting of Dow Jones figures.

Blue-chip does not mean risk-free. A large established company can still lose value, cut dividends, face competition, or fail to meet expectations. The term describes reputation and scale, not a guarantee of future performance.