It's known in the industry as the throw-hardware-at-it optimization. It's often effective and what's needed to buy time for software optimization to come in.
As someone who got burnt out on one of their last businesses due to optimizing too early - Yes!!!
Doing it "properly" with "stateless servers" and "autoscaling" with "Kubernetes" costs a hell of a lot more money than a 64 Core server with 256 GB of RAM