Line an 8x8 inch baking pan with parchment paper, leaving overhang on the sides.
Combine chocolate chips and sweetened condensed milk in a large microwave-safe bowl.
Microwave on medium power in 30-second intervals, stirring after each, until the mixture is completely smooth and glossy.
Stir in the vanilla extract until fully combined.
Pour the fudge into the prepared pan and smooth the top with a spatula.
Refrigerate for at least 2 hours until fully set.
Lift out using the parchment, transfer to a cutting board, and slice into squares.