To be classed as a blue-chip company, the company will be at the top or very close to the top of their sector, think of companies such as Apple and Amazon. Although they have a high valuation they may lack the stability and prestige to be considered a blue-chip company or stock. Many blue-chip stocks will have a large market capitalization, but that doesn’t necessarily mean that all stocks with a large cap are blue-chip stocks.
Traditionally, the blue chips at the casino have the highest value and are therefore the most valuable in a set. The term blue-chip has its origins in casino gambling.
