The 21-year-old singer triumphed after his renditions of Fix You by Coldplay and Hello by Adele.
Graham impressed judges Diddy, Meghan Trainor and DJ Khaled and was congratulated by Black Eyed Peas star and the show's host Fergie.
He was stunned about his own victory but said: “I’m in complete shock. I don’t even remember on stage what happened.”
Despite his shock, he is determined “to become the biggest male superstar in the industry.”
His win comes four years after he appeared on The X Factor in 2014 with Stereo Kicks alongside seven other bandmembers.
During his time on the show he got his 16-year-old girlfriend pregnant but he ditched her after she lost the baby.
Molly Ranger claimed he told her to have an abortion to save his dream of being a star.
She explained to The Sun on Sunday that she sent the singer a text telling him she was pregnant and was stunned by James’s response.
He replied: “What????????? Are you serious Molly? I’m with you through this baby? We deal with it and get rid of it and stay together and get stronger!!"
Molly claimed he refused to visit her in hospital when she miscarried and said: “It was like he didn’t care … I just cannot believe how cold and evil he has been.”
Stereo Kicks — who were tipped to be “the next best thing” — were put together by Simon Cowell to follow in the footsteps of One Direction.
But James told Molly he didn't want to be in the group when X Factor producers and Simon Cowell decided to put them together.
Molly said: “He was really annoyed when they put him in Stereo Kicks. It was like a personal attack to him, like he couldn’t be successful on his own.
"He messaged every day but told me The X Factor house was like a prison.”
His former Stereo Kicks bandmate Casey Johnson is now dating Marnie Simpson and has joined pop band Union J, he's also taken part in reality shows MTV's Ex On The Beach and Single AF.
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