AlGaN/GaN high electron mobility transistor (HEMT) based sensors hold promise as small solid-state physical and chemical sensors because they can operate without a reference electrode and can be integrated into miniaturized sensor arrays. However, over extended time periods, low frequency noise causes anomalous variations (drift) in sensor signal, especially in liquid environments. These effects occur despite electromagnetic interference mitigation. To understand the low frequency noise, 1/ <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">f</i> noise measurements between 0.1 and 100 kHz were undertaken, in both air and water, under constant pH and normal laboratory pressure conditions. The 1/ <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">f</i> <sup xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">γ</sup> noise for the device in water was larger in magnitude than in air, and estimates for the γ-parameter in air and water were approximately 1 and 1.5, respectively. The corner frequency was observed between 100 and 1000 Hz. Based on this analysis, AC excitation at 1 kHz was applied to the conduction channel to compare the sensor stability in de-ionized water with DC operation. In this controlled test, introduction of AC excitation resulted in a strong correlation of sensor signal with the ambient temperature variations over nearly 90 hours of testing (effectively acting as a temperature sensor with a high degree of stability) while operation in DC mode resulted in largely no correlation with temperature. This indicates that AC excitation above the corner frequency is a potentially effective method to mitigate long-term sensor instability, a critical limitation for any AlGaN/GaN transistor-based physical or chemical sensors in aqueous environments.