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Use an opcode cache like APC, setup w3-total-cache plugin too.

The last WP blog I setup used the following:
- PHP5 w/APC
- w3-total-cache
- nginx web server (using try_files to handle rewrites)

Usually that's enough for most blogs and will help a lot with speed.
 
test your site with gtmetrix.com and then optimize accordingly :)

they tell you the issues causing high load time and the solution for it...
 
^I got 64M allocated but the plugin says 32M allocated memory exhausted, I guess there might be some problems with the plugin, anyway... I'm using WP-Minify now and it works good for me. :)
 
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