Temperature Gauge

Yes, it could, but the sensor itself should be the last thing on the list of suspects because it has just one component inside it. The best suspect is the terminal in its connector. It can be spread, making less-than-perfect contact, or there could be a film of corrosion between the mating terminals.

The best approach is to wait for the problem to occur again, then leave the ignition switch on, and jump out and wiggle the connector. If that doesn't make the gauge start working again, unplug the connector, then use a small jumper wire to connect that plug to a paint-free point on the engine. That should make the gauge read maximum "hot".

I recommend not touching that connector until you're ready to do that test. Simply unplugging it and plugging it back in will shine up the terminals a little from the scratching action, then the gauge might work fine for weeks or months. We want to know what the cause is, then go about fixing it, confident we're on the right track.

The only drawing I can find shows the two-wire coolant temperature sensor for the Engine Computer. For the dash gauge, you want the single-wire sensor, but it will be close to the one shown below, near the thermostat housing. The wire for the gauge sensor is purple / yellow.

When this problem shows up right after the sensor is replaced, a common cause is the threads were wrapped with Teflon tape to help them seal. In fact, those threads provide the ground connection, and that is insulated when that tape is used.