JSFiddle - React, Tailwind, and code Playground

HTML

<input  id="term"/> 

<ul id="ul-id" >

    <li id="li-id-1"> hello budy this is really simple stuff </li>
    <li id="li-id-2"> this is it</li>
    <li id="li-id-3"> there is something here</li>
    <li id="li-id-4"> plain text file</li>

</ul>

CSS

span.red {
    color: red;
}

JavaScript

$('#term').change(function() {
    var inpArr = $(this).val().split(" ");
    
    $('#ul-id li').each(function() {
        var liArr = $(this).text().split(" ");
        var txt = "";
        $.each(liArr, function(i, v) {
            if(inpArr.indexOf(v) > -1) {
                txt += "<span class='red'>"+ v +"</span> ";
            } else {
                txt += v + " ";
            }
        });
        $(this).html(txt);
    });
});