The "use client" directive in Next.js is used to declare a boundary between Server and Client Component modules. This means that by defining a "use client" in a file, all other modules imported into it, including child components, are considered part of the client bundle - and will be rendered by React on the client (source (https://nextjs.org/docs/app/building-your-application/rendering/client-components)).
However, in your provided code, there is no "use client" directive. Therefore, the component Home is considered a Server Component by default in Next.js, and it will be server-rendered. This is why you see the rendered content ("hi" and "lmao") in the source of the page.
If you want to make Home a Client Component, you should add the "use client" directive at the top of your file, like this:
'use client'
import { useState } from "react"
export default function Home() {
const [text, setText] = useState('hi')
return (
<div>
{text}
<div>lmao</div>
</div>
)
}
With this change, the Home component and its children will be rendered on the client side. However, please note that this will make the initial content of the component not visible in the page source, as it will be rendered in the browser after the JavaScript is downloaded and executed.
Note: you can ask me a follow up question by @ mentioning me again :speech_balloon: