The Magnificent Seven – some of the stock market’s highest flyers – could see hundreds of millions of new costs under the Trump administration’s proposed H-1B visa changes. Amazon (NASDAQ:AMZN) alone could face $173 million if the administration moves forward with a $100,000-per-petition fee based on the amount of petitions the company filed in fiscal year (FY) 2025.
H-1B visas allow businesses to hire foreign workers in specialty occupations – jobs that require highly specialized knowledge and the equivalent of a bachelor’s degree or higher. H-1B visas have a three-year limit, which can be extended to six years total. Each year, 65,000 H-1B visas can be issued, and 20,000 additional visas can be provided to those who have a master’s degree or higher from a U.S. institution. Other exemptions are available as well.
For investors, understanding the Magnificent Seven’s reliance on H-1Bs is important, especially as talent-intensive companies rely on recruiting the best talent from around the world.
Methodology
The Motley Fool estimated hypothetical H-1B fees by multiplying the number of new petitions each company filed in FY25 by the Trump administration’s proposed $100,000 fee per petition. Only new petitions were included, as the fee does not apply to continuations, amendments, or changes of employer. This approach reflects the company’s potential cost exposure had the fee been in place in FY25.
How the Magnificent Seven Have Used H-1Bs and What They Could Pay
How the Magnificent Seven Have Used H-1Bs and What They Could Pay
Amazon tops the list by H-1Bs in use in FY2025 and what it would’ve paid for new petitions that year as well. Amazon has 10,044 H-1Bs employed and had 1,726 new petitions accepted, which would have come with a $172.6 million price tag had the fee been in place last year.
Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) would have also surpassed $100 million in H-1B fees.
Tesla (NASDAQ:TSLA) has the least exposure to H-1B fees among the Magnificent Seven. Elon Musk’s electric vehicle company used 727 H-1Bs in FY25 and had just 166 petitions approved, which would’ve hit the business with a $16.6 million bill.
While those are high price tags for just a handful of hires, the costs are a percentage of a percentage relative to the revenue the Magnificent Seven companies generate, meaning it’s likely a cost they could bear. Whether they are willing to – and whether much smaller companies are willing to as well – are different questions.
Magnificent Seven H-1B Use Over Time
H-1Bs granted to the Magnificent Seven have grown sharply over the past decade, reflecting an increasing reliance on global talent. Amazon has consistently led the pack, overtaking Microsoft for the most H-1Bs in use in 2019. Amazon has also added the most H-1B visa beneficiaries since 2015, 8,088. Meta is a distant second by that measure, adding 4,143 beneficiaries.
By percentage growth, the Magnificent Seven companies that had increased their use of H-1B visas the most are Meta, Amazon, Nvidia (NASDAQ:NVDA) and Tesla.
H-1Bs by company
H-1Bs by company
More than 50,000 companies utilize H-1B visas, but the top 10 dominate, accounting for roughly 16% of all visas currently in use.
Five of the top 10 H-1B beneficiaries are in the Magnificent Seven: Amazon, Microsoft, Meta, Apple (NASDAQ:AAPL), and Alphabet (NASDAQ:GOOG).
Two companies in the top 10 were founded in India, Cognizant (NASDAQ:CTSH) and Tata Consulting (NSE:TCS). More H-1B visas go to employees from India than any other country.
All of the top 10 H-1B beneficiaries are in knowledge-intensive industries as opposed to manufacturing or other production-focused sectors.
H-1Bs by industry
H-1Bs by industry
The majority of H-1Bs are awarded to companies in the professional services sector, which encompasses knowledge-intensive specialized roles including legal services, accounting, architectural and engineering professions, computer systems design, management consulting, and scientific research and development.
Manufacturing, information, and finance and insurance are among the other industries that employ the most H-1B visas.
Agriculture and mining, oil, and gas, and the arts and entertainment have minimal exposure to the H-1B fee changes, in part because there are other specialized visas for occupations in some of those industries.
H-1Bs by state
H-1Bs by state
H-1B usage varies by state. High-population, high-GDP states with tech hubs dominate H-1B use – California, Texas, and New York have the most H-1B employees working there. Lower-population states that aren’t known for their tech industries, like Alaska, Wyoming, Montana, and Hawaii, for example, face less impact from the new H-1B visa fees.
Why Investors Should Pay Attention to H-1B Visa Changes
Why Investors Should Pay Attention to H-1B Visa Changes
The Magnificent Seven are among the heaviest users of H-1B visas, and they could have to pay hundreds of millions in new fees if they continue to petition for new H-1Bs at rates similar to previous years. It’s not just the biggest companies that could face steep fees, though; smaller businesses that use H-1B visas to fill highly specialized positions important to growth could have the hardest time affording the new costs or finding and competing for replacement talent.
As a result of H-1B visa fees, companies might have to change the geographic footprint of their workforces to allow them to operate and recruit in countries where they would otherwise have sourced that talent to work in the U.S. That could impact cash flow, hiring strategy, and competition among companies of all sizes.
Sources
- U.S. Citizenship and Immigration Services (2025). “H-1B Employer Data Hub.”
