Ben Rabizadeh, founder of storytrading.com, said Aehr Test Systems AEHR is his largest position Wednesday on Benzinga's YouTube show "Power Hour."

Rabizadeh told Benzinga that he has known about the company for the past few years, but he decided to increase his position in the stock at the beginning of July. 

Rabizadeh's Thesis: "The key to understanding what can happen in the future is understanding what happened in the past," he said. 

Aehr Test Systems engages in the testing of semiconductor chips, Rabizadeh said.

In 2017, the stock spiked on news that it received an order from Apple Inc AAPL, he said. According to Rabizadeh, the company tested a small sample size of Apple's chips before Apple decided it did not want to proceed with chip testing.

As semiconductor chips become more advanced, chip testing is becoming more and more important, he said.

He expects Aehr Test Systems to receive significant recurring orders moving forward. The company received multiple orders in July from an EV manufacturer Rabizadeh said he believes to be Tesla Inc TSLA.

Recent Earnings: On July 15, Aehr Test Systems reported quarterly earnings of 4 cents per share, which beat the estimate of 2 cents per share. The company reported quarterly revenue of $7.6 million, which beat the estimate of $7.03 million.

Price Target: From a technical perspective, Rabizadeh is targeting a short-term move to the mid-teens if the stock is able to break through $8 per share with high volume.

Aehr Test Systems could reach $50 by the end of 2021, Rabizadeh said. The stock could trade as high as $100 per share in the next two to three years, he added. 

See the full interview here:

AEHR Price Action: Aehr Test Systems has traded as high as $7.15 and as low as $1.15 over a 52-week period.

The stock was up 37.5% at $8.03 at the close Wednesday.