Markets
A blue chip is the stock of a large, well-established and financially stable company with a high market capitalisation.
Blue chips are the shares of large, established companies with high market capitalisation, stable earnings and often a long dividend history. The term comes from poker, where the blue chips carry the highest value.
In Germany, DAX companies such as SAP, Siemens, Allianz and BASF count as blue chips. Internationally, they include companies like Apple, Microsoft, Johnson & Johnson and Nestlé.
Blue chips are regarded as comparatively safe investments with lower volatility than small caps, though they also offer less growth potential.
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