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Investing.com -- Capgemini shares fell as much as 3% on Monday as investors reacted to U.S. President Donald Trump’s new restrictions on H-1B visas that could impact the global IT services sector.
Trump signed a proclamation on Friday requiring a "$100,000 payment to accompany or supplement H-1B petitions for new applications," a substantial increase from the current fee structure.
A White House account on X clarified over the weekend that the new requirement does not apply to current H-1B visa holders.
According to data from U.S. Citizenship and Immigration Services, Capgemini was the 11th largest employer of H-1B visa holders between fiscal year 2016 through June 30, with its U.S. subsidiary hiring over 30,000 workers during this period.
Bernstein analyst Richard Nguyen, who maintains an outperform rating on the stock, noted that Trump’s policy could disrupt some onshore projects in the U.S., make pricing negotiations with customers more difficult, and require additional cost adjustments.
Nguyen added that the company could reduce the negative impact by utilizing offshore resources, noting that Capgemini has already decreased its reliance on H-1B workers over the past five years.
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