Space Exploration Technologies (SPCX) going public is an important moment for the broader technology sector as the artificial intelligence and data revolution takes the next step forward, Wedbush Securities said in a research note Friday.

SpaceX has started to impact the entire tech space, with many investors selling existing technology stocks to make strategic bets on the SpaceX initial public offering, according to the note.

Wedbush believes the SpaceX anticipation has caused some more volatility in the market, especially in the tech sector, as traders and investors anticipate the ripple impact of this historical IPO, the note added.

The brokerage said it sees an 80% chance of SpaceX and Tesla (TSLA) eventually merging in 2027, with the groundwork for the business combination already in place.

Elon Musk aims to own and control more of the AI ecosystem, and combining SpaceX and Tesla could create stronger ties between the disruptive tech stalwarts looking to lead the AI revolution in the industry's next tech chapter, the brokerage added.