Number of available products vs performance and server specification

Hi!
As said in title, does it matter how many products I have in my inventory? I understand that database query can be slower.
Assuming DB is on another super fast server so query time is not a problem, will my site performance be degraded depends on how many products I have?
Do I need better hosting depends on product count?
I'm aiming to have around 500k products in my inventory and I'm wondering if those cheap hostings (512 mb RAM, 5GB SSD) will handle that, or it doesn't matter how many products I have?

BR,
Jakub

A very large number of products could have impact, but it would depend on some settings.  See the performance guide.