Trump’s $100,000 H-1B Visa Fee Hike: Impact on Indian IT Giants and US Tech Stocks

In a move shaking both Wall Street and Dalal Street, US President Donald Trump has signed a proclamation raising the annual H-1B visa fee to $100,000. The decision, effective September 21, is expected to significantly impact Indian IT majors such as TCS, Infosys, Wipro, HCLTech, and Cognizant, along with US tech leaders like NVIDIA, Tesla, Amazon, Meta, Alphabet, and Apple.

A Blow to Indian IT Firms

According to industry data, Indian IT companies collectively sponsored 13,396 H-1B visas in FY25. The new rule increases their combined costs from $13.4 million to a staggering $1.34 billion—roughly 10% of their net profits. Experts warn this could spark a sell-off in Indian tech stocks when markets open on Monday.

Cognizant shares already dropped 4.75% on Nasdaq, while Infosys fell 3.40% on NYSE following the announcement. Analysts expect more volatility across IT counters.

“The sudden jump in visa fees will erode competitiveness for Indian IT firms that rely heavily on skilled engineers for US client projects,” said Seema Srivastava, Senior Research Analyst, SMC Global Securities.

Threat to US Tech Companies Too

The impact isn’t limited to Indian firms. US tech giants—including Amazon, Microsoft, Google, Apple, and Meta—also depend on a large pool of H-1B professionals, many from India.

“These companies now face significantly higher staffing expenses. Sponsorships may shrink to only critical or senior roles, while junior and mid-level hiring could decline sharply,” Srivastava added. “Some roles may even shift offshore, hurting the US market’s innovation pipeline.”

Rising Costs and Talent Gaps

Market experts believe the fee hike is designed to push American companies to hire locally. However, this shift could backfire.

“American tech workers demand much higher salaries, while Indian engineers are often more skilled and efficient,” said Sandeep Pandey, Co-founder, Basav Capital. “This will push up input costs, squeeze margins, and reduce overall output quality.”

Pandey added that NASDAQ-listed stocks such as NVIDIA, Tesla, Meta, and Alphabet are likely to react sharply when trading resumes.

Broader Implications

The move comes amid Trump’s wider push to curb immigration and create more jobs for US citizens. While it may increase local hiring in the short term, analysts warn of rising operational costs, offshore migration of roles, and slower innovation in the long run.

As both Indian and American markets prepare for Monday’s session, all eyes are on how tech stocks—already under pressure—will respond to this unprecedented visa fee surge.