Microsoft (MSFT) Stock Slides as Trump Freezes Microsoft Green-Card Filings

TLDR

• Trump administration freezes Microsoft’s green-card labor certifications, citing concerns over alleged misuse of employment visa programs.
• MSFT stock falls toward $525 as investors assess new immigration restrictions and broader technology market weakness.
• Adobe and six major IT outsourcing companies also face restrictions on employment-based permanent residency applications.
• Nine leading universities face investigations into alleged J-1 visa misuse and possible wage suppression.
• Microsoft’s OpenAI ties attract attention following reports of lower annualized revenue than previously communicated.

Microsoft (MSFT) stock fell on October 8 as the Trump administration suspended Microsoft’s access to a green-card process. Other technology firms faced restrictions over alleged visa misuse. Microsoft shares traded near $531 before sliding to $525.06. The stock recovered to $525.64 on the intraday chart, while broader technology shares faced selling pressure.

Microsoft Corporation, MSFT

MSFT Stock Faces New Hiring Restrictions

Vice President JD Vance urged Microsoft to hire more American workers. Labor Secretary Keith Sonderling said officials would stop accepting new permanent labor certification applications from the affected businesses.

The suspension also covers Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini. Authorities have not announced findings of wrongdoing against the companies.

Green-Card Freeze Reaches Universities

The PERM process requires employers to show that hiring foreign workers will not disadvantage qualified American applicants. Existing H-1B visa holders are not directly barred from working.

The crackdown comes as AI-related hiring continues across American software and data-center businesses. A recent report cited more than 750,000 AI-linked jobs created since 2023.

Officials also launched investigations into nine universities, including Harvard, Yale, Stanford, Brown and MIT. Investigators are examining whether J-1 exchange visas were used to reduce wages.

The administration previously introduced a $100,000 fee for certain new H-1B petitions. Its latest action targets the separate process that supports permanent residency applications.

OpenAI Report Adds Pressure to Technology Shares

A Financial Times report said OpenAI’s annualized revenue was about $20 billion below an earlier reported figure. Separately, AI data-center revenue growth remained strong at Applied Digital.

The report appeared during a wider selloff in AI-linked shares. Microsoft maintains close commercial ties with OpenAI, making the reported revenue gap relevant to shareholders.

Neither news item confirms why Microsoft shares declined. Investors also faced changing expectations for AI spending, cloud demand and company earnings during Thursday’s trading session.

The intraday chart showed selling below $530 and $528, with increased volume during the decline. The $525 area became the nearest watched support level.

A separate retail investor allocation report showed US stock exposure reaching 71.8% in September. That broader positioning provides context but does not explain Microsoft’s price movement.

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