Tech Market Turmoil: New H-1B Visa Fees Rock Global Stocks

In a recent move, the US government has introduced a sharp increase in the H-1B visa fees, raising the costs to USD 100,000 per applicant effective from September 2025. This has sent a ripple of concern across global tech markets, particularly affecting Nasdaq-listed giants such as NVIDIA, Tesla, Alphabet, and Amazon. According to Mint, this policy change could severely impact staffing budgets and long-term profitability for these companies.

The Financial Repercussions

The fee hike is expected to push staffing costs higher, leaving tech giants scrambling to adjust their operational strategies. Many companies, including Amazon and Apple, employ vast numbers of H-1B visa holders predominantly from India. The fee increase means that companies may have to prioritize which roles to sponsor, potentially leaving junior and mid-level positions offshore.

International Market Reaction

Indicative of the market sentiment, shares of Cognizant Technology Solutions fell by approximately 4.75% on Nasdaq, while Infosys saw a decline of 3.40% on the NYSE. Financial analysts indicate that Indian IT companies may encounter a shrinking talent pool, heightening competition and operational costs.

Strategic Shifts for Tech Giants

According to Seema Srivastava, a Senior Research Analyst at SMC Global Securities, “The fee escalation will dramatically raise staffing expenses for American and Indian tech companies with significant US operations.” Moreover, firms might need to reconsider their hiring strategies, focusing more on onshoring and potentially increasing their American workforce.

Analyst Insights & Predictions

Sandeep Pandey from Basav Capital notes, “Increased employee costs might pressure company profit margins, particularly for those dependent on H-1B professionals for crucial roles.” Analyst warnings suggest potential negative reactions from tech stocks once the US stock markets resume trading.

Indian IT Sector Faces the Fallout

In India, the effects were immediate. The Nifty IT index fell over 3.5% in intraday trades, with Tech Mahindra recording the deepest fall of 5.8%. Mphasis, Persistent Systems, and others also saw notable declines, highlighting the broad impact of the US policy decision.

The H-1B visa fee hike serves as a significant turning point for tech markets worldwide, potentially altering corporate operations and investor strategies in the vibrant tech landscape. Tech companies and investors now brace themselves for a wave of challenges brought on by enhanced staffing expenses and a shift in talent dynamics.