The thing to keep in mind is that major diameter is greater than the nominal thread diameter, moreso with a sharp form. I could see M12 in a 1/2" rod, if load isn't a factor. A finer pitch doesn't change much in the case of the internal thread. Single pointing might be easier here. The only real trouble would arise if you were going to try to form tap.
I ran some M34x0.75 in a 36mm OD recently. I've single pointed many non-standard internal and external thread over the years.
Ever seen a Timesert for thread repair? The M10x1 insert uses a ~Ø11.2mm tap. The inserts are machined from my understanding.
