  The Dirac semimetal PdTe$_2$ was recently reported to be a type-I
superconductor with $T_c = 1.64$ K and a critical field $\mu_0H_c = 13.6$ mT.
Since type-I superconductivity is unexpected for binary compounds, we have
conducted muon spin rotation experiments to probe the superconducting phase on
the microscopic scale via its intermediate state. For crystals with a finite
demagnetization factor, $N$, the intermediate state forms in applied fields
$(1-N)H_c < H_a < H_c$. We have carried out transverse field muon spin rotation
measurements on a thin disk-like crystal with the field perpendicular to
($N_{\perp}=0.86$) and in the plane ($N_{\parallel}=0.08$) of the disk. By
analysing the $\mu$SR signal we find that the volume fraction of the normal
domains grows quasi-linearly with applied field at the expense of the Meissner
domain fraction. This then provides solid evidence for the intermediate state
and type-I superconductivity in the bulk of PdTe$_2$.
