These Tech Stocks Are Already Falling Amid H-1B Immigration Visa Chaos. Why It Matters.

A surprise change to U.S. immigration rules over the weekend will have an impact on the U.S. tech sector. (Dreamstime)

Key Points

About This Summary

• Indian tech stocks fell after the U.S. changed immigration rules impacting Indian workers in the American tech sector.
• Tata Consultancy Services, Infosys, Wipro, and HCL Technologies shares declined in Indian trading.
• H-1B visa applicants now face a $100,000 fee, disrupting Indian outsourcers’ business models and margins.

Tech stocks were suffering early Monday after the White House announced a surprise change to immigration rules over the weekend that will affect many Indian workers at some of the biggest companies in the U.S.

American tech giants such as Amazon , Meta Platforms , and Microsoft that employ large numbers of workers on a visa known as H-1Bs were suffering declines in Monday premarket trading.

Amazon shares shed 0.3% with Meta stock down 0.5% and Microsoft shares retreating 0.6%.

Indian outsourcers’ business models are set to be disrupted following the news over the weekend from the Trump administration that skilled workers applying to the H-1B visa scheme face a new, $100,000 fee.

And it was shares in India that were suffering the most early on with Tata Consultancy Services , one of the world’s largest tech outsourcing groups, falling 3% in trading Monday.

Infosys stock was down 2.6% in Mumbai, with the company’s American depositary receipts, or ADRs, listed in New York down 0.3% in the premarket after a 3.4% decline on Friday.

Wipro shares fell 2.1% in India with the ADRs ticking up 0.7% following a 2.1% drop on Friday, and HCL Technologies stock lost 1.7% in Mumbai.

These companies are among the largest in India’s $280 billion-plus tech sector, which is dominated by outsourcing services.

This hefty per-worker charge will eat into the margins of these Indian companies, which collectively bring tens of thousands of workers to the U.S. on H-1B visas, including for contracts that require on-site work.

The Indian tech sector at large was a sea of red in Monday trading. The wider Nifty 50 benchmark of Indian stocks fell 0.5% and nine of the 10 names in the tech sub-index were down.