There's a very real chance that the OP's SFO-ORD flight will be delayed and that the bags won't make the connection. If that concerns the OP, then perhaps the OP should book an earlier SFO-ORD flight.

Where the 763 parks has no relevance to whether the bags make it.

When the 763 arrives, the baggage handlers will remove several LD-2s (big shiny containers) and take them to the sort room under the terminal. There, they will be opened and the bags sorted. MAD-bound bags will be placed in the the containers destined for the IB flight.

If the OP's inbound 763 is delayed by only a few minutes, the bags will likely make the connection. If the flight is substantially delayed (but not so delayed that the OP misses the IB flight), then maybe the IB flight will wait for connecting bags. Maybe not. If that's a problem, then book the earlier flight.