I have a GTX 1080 SEAHAWK graphics card that usually has temperature around 96 Celsius. Since it (usually) does not crash my system, I have used it many hours to play demanding PC games. I am worried if I continue playing games with this overheated graphics card, it may damage my motherboard and other components on it. Can overheated graphics cards damage PC components nearby? If so, is 96 Celsius (over maximum safe temperature for the graphic card) unsafe and may have already damaged my PC components?
Heat can always damage other components, so it really matters how far the card is from other cards and parts. If there's sufficient case cooling, it should be fine.
My concern would be to ask why your card temperature is reading temps at just below the boiling point of water. Do you get graphics artifacts at that temperature? When it reads at that temperature, can you open the case and feel that much heat in the air near it coming off of the card? Either your overclock is dangerous for the card, or there's a busted component somewhere that is causing you to see these kind of numbers. That could mean the card is on its way out, but it could also mean that you have a bad thermostat on the board that is reading silly temperatures. The latter is not uncommon with computer components; you may not actually be hitting 96c.
I would cold shutdown the machine for half an hour and immediately measure temps after booting; if it still says 96c while the PC is idle and has had time to cool down, it's probably just a bad sensor.