How Trump’s new H-1B visa rules will affect Mag 7 stocks

With President Donald Trump issuing a new $100,000 H-1B visa cost mandate, stock market mavens may wonder what impact the new visa rule will have on big tech companies and, in particular, on the Magnificent Seven stocks.

Larger technology businesses have historically relied on less expensive, yet highly talented, labor from India and China (which comprise 71% and 12% of approved foreign workers in 2024, respectively) to drive their operations, especially in tech development. At $100,000 per foreign employee, the new rule will undoubtedly have some impact on Mag 7 companies’ operations, finances, and stock prices. The real questions for investors are how big an impact the new H-1B employee rules will have on the tech industry and on sector stocks.

It’s a fair question, given the stature of the technology sector as Wall Street’s leading light. The benchmark S&P 500 Information Technology Index is up 19.75% so far in 2026. That’s well ahead of the broader S&P 500 Index, which sports a 13.7% year-to-date return.

Most H-1B visa workers are gobbled up by the technology sector, giving some credence to the theory that the industry will feel the full force of Uncle Sam’s new visa policy.

The proclamation outlines several sweeping changes, with these additions at the top of the list, according to a new summary provided to Quartz by Boundless, a Seattle-based immigration firm.

New $100,000 fee: Employers must pay this one-time fee for each H-1B petition. It’s not yet clear if this will replace or be added to existing fees, which already include $215 for the H-1B lottery registration and $780 for the petition filing, along with other charges.

Higher wage standards: The DOL will revise wage rules to raise required salaries for H-1B workers, further increasing costs for employers.

Increased scrutiny: The administration states these measures are intended to protect U.S. workers and crack down on perceived misuse of the H-1B lottery system.

Boundary questions whether such a steep fee could effectively turn the H-1B into a “luxury work permit” accessible only to the wealthiest corporations and workers.

“The U.S. has built its leadership in technology and innovation by making itself the destination of choice for the world’s top talent,” said Xiao Wang, founder and CEO of Boundless. “Policies like this, alongside growing scrutiny of student visa applications, make it harder for bright, ambitious people to come here and put the United States’ standing as a global leader in innovation at risk.”

Given its deep pockets, the technology sector is well positioned to meet the higher $100,000 cost — up from around $ 1,700-$ 4,500 per H-1B foreign worker, depending on expediting timelines.

“The U.S. has vacuumed up the best global talent; immigrants flowed straight into Amazon, Microsoft, Meta, Apple, and Google, among others,” said Rich Pleeth, CEO and co-founder of Finmile, an AI logistics SaaS company. “If you wanted to build a world-class HQ, you did it in San Francisco, Austin, or New York, because talent was there and visas were relatively easy. Of course, companies will pay for certain top executives, and the U.S. remains a hugely attractive place to live and work, but this move makes it hard.”

One glance at some of the pedigreed H-1B visa standouts bears that sentiment out. As Pleeth noted, Sundar Pichai came to the US on a student visa, then got his H-1B at McKinsey before joining Google, where he’s now CEO. Additionally, Microsoft CEO Satya Nadella even gave up his Green Card to expedite an H-1B visa so his wife could join him in the U.S.

“That pipeline built Big Tech,” Pleeth stated. “As the US slams the door with a $100,000 paywall, the U.K. becomes incredibly attractive. London, Manchester, Cambridge, Edinburgh, these cities could start winning the battle for brains.”

Stock-wise, the $100,000 H-1 B visa fee may not directly impact U.S. tech giants initially. Still, as usual with Wall Street, where the long game is prioritized among professional traders, that scenario could change as the new fee policy unfolds over time.

“In the short term, I wouldn’t anticipate a huge direct stock price shock. But at the same time, the Street doesn’t think about unexpected events; it likes certainty,” said Michael Kelly, partner and chief investment officer at Reach Strategic Wealth, in Madison, Conn.

Kelly said the rollout of such a drastic change could cause “some short-term volatility” as institutional investors determine the real probability of the downstream impacts. “Longer term, if talent shortages cause product delays or margin pressures, it could weigh on earnings multiples. Investors will be watching hiring disclosures closely,” he said.

Which tech giants should investors lock in on going forward? These companies are worth tracking, based on already-approved visas ranked by Quartz .

• Amazon (AMZN). Est. number of H-1B workers: 12,391

• Microsoft (MSFT). Est. number of H-1B workers: 5,189

• Meta (META). Est. number of H-1B workers: 5,123

• Apple (AAPL). Est. number of H-1B workers: 4,202

• Alphabet/Google (GOOG). Est. number of H-1B workers: 4,181

• Oracle (ORCL). Est. number of H-1B workers: 2,092

As of late September, over 600,000 H-1B visa holders work in the U.S., with a considerable concentration within the tech sector. “Amazon, Microsoft, Google, and Meta are consistently among the top H-1B sponsors,” Kelly said. “These firms will feel the biggest initial pinch, but again, the indirect impacts will be felt across the industry.”

On the horizon, savvy investors may also want to keep an eye on technology startups, which are also likely to be negatively impacted by the new $100,000 visa.

“Among high-growth, VC-backed tech startups in the U.S., somewhere between 40-70% have at least one foreign-born founder, especially in AI and deep tech, which are popular verticals today,” said venture financing attorney Lindsey Mignano at SSM Legal in San Francisco, Cal.

Many foreign founders incorporate their startup companies and use them as the visa vehicle for their H-1B application. “After a venture financing event, many venture capital firms require, or at least prefer, that a foreign founder reside in the United States to assist with building partnerships locally,” Mignano noted.

Mignano also pointed out that because $100,000 is a significant fixed cost for many early-stage startups to pay to allow a founder to live and work in the U.S. after a venture financing event, the early-stage implications for forming and financing foreign-founded early-stage companies may shift significantly. “It could be that foreign founders are less likely to build and scale companies here in the U.S., and/or that early stage venture capital firms are more inclined to invest in American-founded early stage startups to avoid the spend, if all things are equal,” she said.

Sector-wise, investors seeking an edge in global visa transformations should look to the Far East.

“Let’s be honest, the biggest winners here are China and India,” said Josh Pantony, CEO at Toronto-based Boostd.ai. “Brain drain from those countries to the U.S. has been hugely to the U.S.’s advantage, and this will directly reverse that trend.”

Pantony also believes that, despite rhetoric to the contrary, the U.S. has classically been the world leader at integrating top talent from other countries into its economy. “I don’t see any individual country, including in Europe, as being nearly as good at it,” he noted. “Hence, I see this as a headwind for Western companies as a whole.”