Blown Graphics Card, is it my PSU?

I recently bought a new computer and put it together myself. Everything worked great the first day then on the second day my computer froze and when I went to restart it my Graphics card began to smoke and sparked. I pulled out the card and noticed a chip at the bottom left of my graphics card had been damaged.

Here are my specs:

Processor - i5 2400 sandybridge 3.2Ghz
Graphics Card - Geforce 560gtx
PSU - Xion 1000 watt
Heatsink - Cooler Master 212 Plus
Ram - 8Gb (2x4) G-Skill Ripjaw series DDR3
Motherboard - Gigabyte GA-Z68XP-UD3
HDD - Seagate 7200 350Gb

I know the PSU I listed should be more then strong enough to run that card, but is that a bad brand PSU or something else? Any help would be great thank you.