Sounds to me like either the chipset thermal sensor has failed and it's defaulting to it's highest reading as a result OR there is an actual problem such as the heatsink on the chipset has come loose or there is a problem with the thermal interface material between the chipset and chipset heatsink.
If you run HWinfo for a period of time, say, from the time you reach the desktop and can start HWinfo and for about five minutes or so afterwards, does that temperature change or fluctuate at all, or is it just plain stuck at 127°C and never changes no matter what you run or what you do?
Maybe also pull the side panel and point a fan directly at the chipset heatsink to see if it makes any difference in thermal reading at all.