The ECM will cut back on engine output once IAT gets above some temperature that I can't remember right now (it's pretty low, 90F or so, but I won't swear to it). The IAT sensor is in the MAF sensor that is mounted in an uninsulated plastic tube. If you don't have plenty of air flow through the engine compartment, the MAF/IAT can be significantly hotter than ambient. A CAI should help but may not cure the problem on a hot day in stop-and-go traffic.
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