Impact of New $100,000 H‑1B Visa Mandate on Big Tech (Magnificent 7)

The U.S. has imposed a $100,000 fee per new H‑1B visa petition, up from just $1,000. This targets new hires, not renewals, and affects firms that rely on foreign talent. This will largely impact tech, healthcare and finance. 

Big Tech (Microsoft, Amazon, Meta, Google, Apple, etc.) already have thousands of active H‑1B workers.

These companies will likely be less impacted because:

• They don’t need to petition as many new visas annually.
• They have the resources to absorb the cost.
• They stand to benefit from hefty government contracts (defense, AI, cloud) where having existing H‑1B talent gives them an edge.
• They were all present at the current president's inauguration and have been in intimate dinner conversations, exclusive events, signaling continued alignment with the administration.
• For example: Oracle (ORCL) rose 4% Friday after Bloomberg reported Oracle is in discussions with Meta Platforms (META) for a cloud computing deal worth about $20 billion. Oracle climbed another 0.8% this morning (Mon. Sept 22nd, 2025) on news the company would recreate and provide security for a new U.S. version of TikTok's algorithm under a deal to sell the social media app to a consortium of American investors, Bloomberg reported.

Startups and smaller firms, by contrast, face a major barrier. The $100K fee could shut them out of hiring foreign talent entirely, reducing innovation, competition, and increasing Big Tech dominance.

Broader effects

• Hiring costs rise, especially for junior/technical roles.
• Offshoring will increase as companies shift roles abroad to avoid visa costs.
• Legal and logistical complexity will grow, delaying hires.
• Domestic wage pressure may rise due to tighter labor supply. But, what is more likely:
• Slowed hiring for entry level roles and heavier reliance on AI to fill labor needs.

Stock price impact?

No major dip yet, but:

• Investors view the policy as a long-term talent risk.
• Firms with fewer visa constraints could gain market share.
• Net effect: Negative for labor-heavy companies. Neutral or positive for Big Tech as competitors could be squeezed out.

Bottom Line

This visa rule hurts small firms most, but entrenched tech giants with existing H‑1Bs and close government ties will likely come out ahead. It raises barriers to entry, eliminates potential competition, while reinforcing Big Tech’s grip on talent and contracts.

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