I did 3/4" wide and 1/4" deep dados in one pass no problem with mine.
It's pretty shallow. Much deeper than that and you'll hear the unmistakable crackle and pop of a melted motor.
I used a circle cutting jig before with a less conservative depth of cut and I broke the 1/2" bit before the motor anywhere near bogged down.
Spend more if you want, but for 99% of what a DIY-er will do it's more than enough.
@Bobbo started
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I did 3/4" wide and 1/4" deep dados in one pass no problem with mine.