94 degF isn't reall hot - I've held phones while watching TV, doing nothing, and have watched them go up to 98 degF - body temperature.
Temperature sensor is for the battery though. On the LTEvo, battery is at bottom behind the aluminum, processors are up top.
Here, the phone is sandwiched - from front to back - glass, battery, boards with chips, aluminum case.
It may feel warmer than the temperature reading due to the heat going to the aluminum case rather than more into the battery.
Note that you can have the LTEvo report low while the processor location is at a higher temperature.