Quick Answer: The best way to organize shared components in Next.js is to keep them presentational, stateless where possible, and colocated by feature rather than forcing everything into a global "components" folder. To avoid unnecessary re-renders, memoize truly stable components with `React.memo`, pass primitive props instead of new object/function references on every render, and isolate state so that only the smallest necessary subtree updates.
In Next.js, the highest-performance component architecture is usually a feature-first structure with a clear separation between shared UI primitives, reusable layout elements, and page-specific compositions. This reduces coupling and prevents broad re-render cascades caused by importing stateful, over-generalized components into multiple routes. Performance is preserved by designing shared components to be pure and predictable, using `React.memo` only where props are stable, and avoiding unnecessary context overuse, inline callbacks, and recreated objects that trigger updates even when visible output does not change.