Intel, which announced plans to invest $2 billion in a new plant in Ireland, drove the Dow Jones and the Nasdaq sharply higher in New York yesterday as investors rewarded the company for its strong growth prospects.

The Dow rose 108.54, or 1 per cent, to close at 10,557.84. Broader stock indicators were also higher. The Standard and Poor's 500 was up 21.48, or 1.5 per cent, at 1,485.94, and the Nasdaq was up 129.29, or 3.3 per cent, at 3,989.85.

Intel rose $10.44 to $135.13, accounting for more than half of the Dow's gains. The company said it would invest $2 billion in a new plant in Ireland. Lehman Brothers analyst Dan Niles said Intel's stock price should reach $175 within 12 months.