From Traderpedia

Definition: A stock that is from a well known, stable, prestigious company with a long and successful track record of profit growth and dividend sharing.

Blue chip companies or stocks are considered those with either a large market capitalization values or simply well-established companies that have stable earnings and no extensive liabilities. Typically, their shares are perceived to offer reliable returns, low-yield, and low-risk.

The name comes from the highest value chip in the game of poker - the blue chip.