blue chip: meaning, definition, pronunciation and examples
B2/C1Formal/Semi-formal; primarily used in business, finance, and investment contexts.
Quick answer
What does “blue chip” mean?
A highly valuable and reliable stock or company, traditionally from the Dow Jones Industrial Average, considered safe and stable for investment.
Audio
Pronunciation
Definition
Meaning and Definition
A highly valuable and reliable stock or company, traditionally from the Dow Jones Industrial Average, considered safe and stable for investment.
By extension, any entity, project, or asset considered to be of the highest quality, lowest risk, and most reliable in its category.
Dialectal Variation
British vs American Usage
Differences
No significant differences in definition or usage between UK and US English. The concept and its application in financial markets are identical.
Connotations
Identical connotations of safety, quality, and established reputation in both varieties.
Frequency
Equally common in both UK and US financial and business journalism.
Grammar
How to Use “blue chip” in a Sentence
adjective + noun (e.g., a blue-chip stock)noun + of + noun (e.g., the bluest of blue-chip companies)Vocabulary
Collocations
Examples
Examples of “blue chip” in a Sentence
verb
British English
- (Not standard; the term is not used as a verb.)
American English
- (Not standard; the term is not used as a verb.)
adverb
British English
- (Not standard; the term is not used as an adverb.)
American English
- (Not standard; the term is not used as an adverb.)
adjective
British English
- She advised buying into a few blue-chip funds for the pension scheme.
- It's a blue-chip engineering firm with a century of dividends.
American English
- He built a portfolio of blue-chip dividend stocks.
- The conference was attended by blue-chip corporate leaders.
Usage
Meaning in Context
Business
Our portfolio is weighted heavily towards blue-chip industrial stocks for stability.
Academic
The study analysed the beta coefficients of blue-chip equities during market downturns.
Everyday
He only invests in what he calls 'blue-chip' companies, the big names everyone knows.
Technical
The fund's mandate restricts it to investing in S&P 500 constituents with a market cap over $50bn, a classic blue-chip filter.
Vocabulary
Synonyms of “blue chip”
Strong
Neutral
Weak
Vocabulary
Antonyms of “blue chip”
Watch out
Common Mistakes When Using “blue chip”
- Using it to describe fast-growing tech startups (they are often high-risk, not blue-chip).
- Spelling it as 'bluechip' without a hyphen when used as a compound adjective (blue-chip is standard).
FAQ
Frequently Asked Questions
Primarily, yes, in finance. However, it is often used metaphorically in other fields (sports, art, real estate) to denote the top-tier, most reliable, and valuable entities.
No. While considered lower risk and more stable, blue-chip stocks can and do lose value during severe market downturns or company-specific crises. They are not a guarantee.
It comes from poker and other gambling games, where blue chips traditionally had the highest monetary value on the table.
Yes. If a company faces prolonged financial trouble, major scandals, or a significant deterioration in its business fundamentals, market perception can shift, and it may no longer be considered a blue chip.
A highly valuable and reliable stock or company, traditionally from the Dow Jones Industrial Average, considered safe and stable for investment.
Blue chip is usually formal/semi-formal; primarily used in business, finance, and investment contexts. in register.
Blue chip: in British English it is pronounced /ˌbluː ˈtʃɪp/, and in American English it is pronounced /ˌblu ˈtʃɪp/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “The bluest of blue chips (emphasising utmost reliability)”
- “Blue-chip pedigree”
Learning
Memory Aids
Mnemonic
Think of a poker game: the most valuable chips are blue. The most valuable, safest stocks are 'blue-chip' stocks.
Conceptual Metaphor
VALUE IS A CHIP'S COLOUR (from gambling); RELIABILITY IS SOLIDITY/BLUENESS.
Practice
Quiz
Which of the following is the BEST example of a 'blue-chip' company?