An apparatus and method for dynamically adjusting power limits for processing nodes and other components, such as peripheral interfaces, is disclosed. The apparatus includes multiple processing nodes and other components, and further includes a power management unit configured to set a first frequency limit for at least one of the processing nodes responsive to receiving an indication of a first detected temperature greater than a first temperature threshold. Initial power limits are set below guard-band power limits for components that do not have reliable reporting of power consumption or for cost or power saving reasons. The amount of throttling of processing nodes is used to adjust the power limits for the processing nodes and these components.